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Scottish Bonds - is it any good?

Hi all, I've recently seen a Scottish Bonds account which I think looks quite good, but I don't really know anything about them so I was wondering if anyone could advise me?

It is with Scottish Friendly Assurance, and is a 10 year investment of upto £25 p/m. There is a garuanteed minimum cash sum at the end plus potential bonuses, but it seems to be linked to investments which, in todays climate I'm not sure about?

Here is the link if you need any more info to advise me :)http://www.scottishfriendly.co.uk/affiliate/scottish-bond.html

It also comes with a £15 gift voucher, and £60 cashback, which I know shouldn't influence my desicion!

Any advice would be brilliant, so thank you in advance!
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I'm a (rubbish) Flylady!
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Comments

  • apt
    apt Posts: 3,238 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The likelyhood is that you will lose out more than the cashback and voucher in very heavy charges. I would avoid them.
  • dunstonh
    dunstonh Posts: 119,836 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    They are about the worst type of investment you can buy today. Expensive and obsolete by over a decade. The tax free status is a red herring and the charges more than wipe out the tiny tiny tax benefit that they get.
    It also comes with a £15 gift voucher, and £60 cashback, which I know shouldn't influence my desicion!

    If it comes with a gimmick then you should be on guard. Rubbish products often have gimmicks to help sell them.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Gymgenius
    Gymgenius Posts: 208 Forumite
    There's so much flim-flam surrounding these products that I wouldn't touch them with a barge-pole. The word 'may' is used heavily throughout!

    You'd be better off paying the £25 per month into an ISA or a monthly savings account imo. No risks, no charges, and you'll always know what interest you'll be receiving....plus the chance to change accounts if something better comes along.
  • dunstonh
    dunstonh Posts: 119,836 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The word 'may' is used heavily throughout!

    That isnt grounds for not using them. Modern compliance requirements mean that you have to use words like "potential" and "may".
    You'd be better off paying the £25 per month into an ISA or a monthly savings account imo. No risks, no charges, and you'll always know what interest you'll be receiving.

    That matches your risk profile in that you dont want investment risk but happy to accept inflation and shortfall risk instead. The OP is considering investment risk and using a savings account would not be suitable for someone considering investments. A stocks and Shares ISA would be the more logical choice of "wrapper" and investments appropriate for the level of risk the OP wants to take whilst offering better potential than the rubbish Scot Friendly fund.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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