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Egg 45% GEB
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russellhq22
Posts: 12 Forumite
Just noticed this product on the Egg website but after reading about GEB's in the forum I was a little sceptical.
What they offer is a GEB that will deliver a return of 45% after 5 years if the FTSE100 index is higher than when you took out the bond.
The return is not linked to the growth if the FTSE. If it's 1% higher than when you started, you get 45% return. If it's 10% higher you get 45% return.
If the FTSE is not higher then you get all your deposit back.
Sounds good to me, or am I missing something??
What they offer is a GEB that will deliver a return of 45% after 5 years if the FTSE100 index is higher than when you took out the bond.
The return is not linked to the growth if the FTSE. If it's 1% higher than when you started, you get 45% return. If it's 10% higher you get 45% return.
If the FTSE is not higher then you get all your deposit back.
Sounds good to me, or am I missing something??
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Comments
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i got this through the post.
i can only assume they believe the market won't be higher, if this isn't the case then i am all ears as to an explanation !:grouphug:
no wonder he has a smile on his face...0 -
How would you calculate the average annual return of 45% over 5 years including compounding?
Want to brush up on my maths.0 -
mr_fishbulb wrote: »How would you calculate the average annual return of 45% over 5 years including compounding?
1.45^(1/5) = 1.077 or 7.7%0 -
Prefer the premier version as it will kick you out at any point in the 6 years if the FTSE100 is up on annual renewal date. If it does go the distance and then only sees an increase in the final year then it pays out 96% (or 80% after year 5) compared to Egg at 45%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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