Guaranteed equity bonds

spooky25

Hi everybody

I would like to ask if anybody out there has had any form of experience or guaranteed equity bonds and if so are they worth putting into over a 1-3 basis ?


many thanks

spooky 25:j

Aegis

They're mostly awful with a few exceptions every now and then. With most of them you'd be better off with a fixed savings account and an investment of a smaller amount into a collective investment or two. However, there are a couple which offer very good terms that I'm sure people will be happy to point out for you.

dunstonh

Most are pretty awful. Mainly the retail versions. Some of the institutional versions have been made available to retail clients recently and they do tend to have better terms.

nick22_2

Could you give me details of any that might be worth looking into.

dunstonh

Norwich Union have a fairly good one at the moment. It really depends on how much of a guarantee you want and whether you want a 1, 3 or 6 year version.

nick22_2

I dont want to risk any of my capitol and i was thinking of 3 to 5 years

opinions4u

They tend to give a return of either 0% or 8%ish, depending on the FTSE.

Might as well stick your money in a 7%ish fixed rate and remove the potential to earn less.

nick22_2

I have been looking through the forum and have seen a GEB called the premier GEB , I was just wondering weather there is something like it around now and if it would still be worth investing in.

dunstonh

The Premier one had a conditional guarantee so it wouldnt be any use to you as you said you dont want any risk. For many of us, the condition was acceptable as it was highly unlikely to be in that position.

slopemaster

opinions4u wrote: »

They tend to give a return of either 0% or 8%ish, depending on the FTSE.

Might as well stick your money in a 7%ish fixed rate and remove the potential to earn less.

But if you would pay income tax on the 7% but not on the (possible) 8% cos it comes under CGT then it might be worth it ????