Split investment/guranteed investments

[Brown and Boris]

You know the things, you give them £5k, they gurantee you your money back in 5 years plus 12.5-20%, or the rise in value on the FTSE 100 whichever is the greater.

Worth typing money up for 5 years at a time or another clever bank con?

[Somewhatfoolish]

kinda a con... eg to make the above one way of doing it is sticking the money in 5 year fixed deposit using some of the interest to buy some ftse calls and then pocket the difference because you don't know how to do that... and even if you did you wouldn't be well capitalised enough probably.

me, I'd be too worried about potential megainflation to tie money up for five years, but I'm a paranoid soul.

[richyb]

These have been offered by big banks previously but in the current climate I'd stay well clear. As posted above, risk of big inflation accumalating over the next 5 years and solvency of the investment body. What is the actual guarantee and who actually guarantees it? If it was govt backed maybe but privately backed means feck all if they go under.

[Brown and Boris]

richyb said:

These have been offered by big banks previously but in the current climate I'd stay well clear. As posted above, risk of big inflation accumalating over the next 5 years and solvency of the investment body. What is the actual guarantee and who actually guarantees it? If it was govt backed maybe but privately backed means feck all if they go under.

They seem to be Credit Suisee things being sold by UK banks.

[richyb]

Brown and Boris said:

richyb said:

These have been offered by big banks previously but in the current climate I'd stay well clear. As posted above, risk of big inflation accumalating over the next 5 years and solvency of the investment body. What is the actual guarantee and who actually guarantees it? If it was govt backed maybe but privately backed means feck all if they go under.

They seem to be Credit Suisee things being sold by UK banks.

I worked in investment banking (nothing high up!) for a few years and credit suisse are a big well estabilished and respected company and a few years back that would have counted for a hell of a lot. Now you can't really rely on these things. I've split my limited investments across a few different funds and managers. One with jupiter, one with new star and then regular mini cash isa's. I am pretty risk adverse so have to accept low returns but if you can afford to gamble a bit you might come off a winner. Not in this case but 'Your investment may go up as well as down' is a statement everyone should read and remember closely, especially now.

Edited by richyb on Monday 15th December 18:49

[Brown and Boris]

Well Alliance and Leicester didn't call back as promised.

Obviously they don't need/wamt my money but I am going off the idea anyway given the ealisation that it is 12% over 5 years not 12% a year! Forever the optimist.

[NoelWatson]

Brown and Boris said:

You know the things, you give them £5k, they gurantee you your money back in 5 years plus 12.5-20%, or the rise in value on the FTSE 100 whichever is the greater.

Worth typing money up for 5 years at a time or another clever bank con?

You mustn't forget that the FTSE is currently yielding 6+%

[cjs]

I stuck a few £K in a secure investment fund, I reckon I will only get my investment back, 5 years are up in 2010. It can be difficult to check how the fund is doing as it has a final bonus which kicks in on maturity. Waste of time TBH.

I have been looking at Corporate Bonds in the short medium term, seen returns of up to 10%.