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rbs combi saver green edition 8%?
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chopperharris
Posts: 1,027 Forumite
I cant quite get my heaed around this , it could possibly be the best savings rate yet but with conditions that you put money into green tech shares.Is it every year you need to put money in shares though?
Is it savings or shares , is it a bond , or is it bloody superman .... I dont know....hopefully someone can evalute.
http://www.rbs.co.uk/private/savings/g1/equity.ashx
If its right its the first 8 percent savings bond on the high street , but theres risk in them thar shares.
Is it savings or shares , is it a bond , or is it bloody superman .... I dont know....hopefully someone can evalute.
http://www.rbs.co.uk/private/savings/g1/equity.ashx
If its right its the first 8 percent savings bond on the high street , but theres risk in them thar shares.
Have you tried turning it off and on again?
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Comments
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It smells like a Guaranteed Equity Bond, which have not exactly the highest reputation on this forum (search for them). Usually what happens is the GEB is used to subsidise some tempting savings rates, in the hope that people don't look too closely into the details of the GEB. The links to the RBS bond's details PDFs are broken, but usually what happens is you're forced to put an equal or greater amount into the GEB than in the linked savings account.
In terms of payout it isn't the worst GEB out there, but what worries me more is the 'RBS Green Index' isn't exactly mainstream and it's chosen by RBS themselves. A quick google suggests it's mainly used in relation to RBS/NatWest/Zurich/Ulster Bank structured products. If I were a cynic, there's nothing to stop them choosing the index constituents to ensure they don't have to pay too much out.
Needless to say, tying half of your money to a specific investment theme like this is relatively risky. If you were interested in that as part of a balanced portfolio it may be a useful way of mitigating that risk with a capital guarantee if you can cope with the rather arbitrary nature of the index (and don't forget the GEB doesn't pay out dividends).
I wouldn't touch it just to get the high rates on the attached savings account though. Just stick your money in a 3 year fixed term deposit at 7.xx% instead.
[Disclaimer: I'm an investment learner, don't believe everything I say]0 -
Had a meeting with private banking manager today to find out the risks etc.
It works out at 2 , lowish end.
It is a garunteed capital investment if kept to 3.5 year , 1yr at 8% aer for the savings part and still instant acesss too.
no fees.no dividends.
I had my money in the rbs interest tracker which was giving me 4.35 percent gross , so significant increase over half my savings.
its got a finite allocation , and only available through a personal banking manager...subject to criteria.
The green idex of theirs has performed better than the mci and ftse by some margin over the last 5 years.And if a company isnt perfoming its booted.
The largest 10 members of the rbs green index are
veolia enviroment , france
archer-daniels-midleand co - usa
waste management inc - usa
vestas wind systems a/s - denmark
memc electronic materials inc - usa
bunge ltd -usa
cia energetica de minas gerais - brazil
first solar - usa
acciona sa- spain
johnson matther plc - uk
the breakdown of the index is
3% other
30% solar energy
13% wind energy
7% hydropower
7% biofuels biomass
23% waste management/water treatment
17% energy efficiency / pollution reductionHave you tried turning it off and on again?0 -
A bit naughty of them to refer to the index tracking bit as a fixed term deposit. Its a structured product not a fixed term deposit.
Also, variations of the same product are available from IFAs and some multi-tied agents.
Comparing it with other structured products available at the moment it doesnt rate very wellI 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.0 -
I know what you mean dunston , but im assured the capital in it is safe , thats what im after.I was wise enough to get the private banker to give me that in writing....not exactly high risk-reward I know.
I have other funds in a spearate portfolio with other managers , this though as it is is my cash pot in 3.5 years for bricks and mortar either here or abroad.I like to move every 3 years to a better rung , hopefully i ride the house price wave.
thanks againHave you tried turning it off and on again?0 -
Most guaranteed equity bonds have capital security on maturity. its the terms of this one that dont look attractive.
Investec have quite a good option at the moment. Its only a one year GEB (well more of a structured product than a GEB).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.0
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