RBS 51/2 year bond

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DD_crash
DD_crash Posts: 3 Newbie
in Savings & investments
I am looking to invest £40,000 and have spoken to an adviser at RBS. He told me that they have a new product called the 51/2 year bond which will give 30% provided that the stock market doesnt drop below the level that it is when the bond starts and if it ends at a lower level I get my investment back. The last 12 months are averaged on a monthly basis to smooth it out. Does this sound a good idea?

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  • alanq
    alanq Posts: 4,216 Forumite
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    edited 30 June 2010 at 1:51PM
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    I can't see the product online.

    Are you sure that is wasn't UP TO 30%? Is your money accessible during the 5 1/2 years?

    Even 30% equates to something of the order 5% compound interest. You can get over 4.5% return without stock market linking by depositing in a fixed rate bond with any of several providers.

    Often with RBS fixed term products the term starts up to a couple of months in the future and money earns just BOE base rate until the fixed start start date.
  • ctdctd
    ctdctd Posts: 1,080 Forumite
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    alanq wrote: »
    I can't see the product online.

    Are you sure that is wasn't UP TO 30%?

    It will be a GEB with 30% (or possibly upto 30%) over 5.5 years - so about 5% AER tops
    Do Money Saving sites make you buy more bargains - and spend more money?
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    You can get better terms on a structured product via an IFA assuming a structured product is what you really want. RBS ones rarely come out that good.
    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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