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YBS 6 year guaranteed investment acc

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Received an email from Yorkshire BS today inviting me to partake in this new acc.

Minimum investment £3600 guaranteed 32% over 6 years.

I would not touch it with a barge pole,has anyone been tempted .

I have just noticed they have 4 year acc that offers 19%.

Any views welcome

Comments

  • If my calculations are right (and they frequently aren't), the four year offer works out at the equivalent of 4.45% p.a. So unless you think something terrible will happen to rates in about two years' time, I'd prefer to go with some of the current two-year bonds which are offering in excess of 6.5%

    Apart from the length of time involved, why wouldn't you touch the other one with a bargepole? At least that's offering a minimum of 4.75% p.a.
    "The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens
  • 1vwcb4eb89r0dn3yrbfp.jpg
    "Money saving is often a science, investment is often an art."...MSE
  • dunstonh
    dunstonh Posts: 119,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Pretty awful figures for a GEB. Best avoided as there are better.
    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.
  • metrobus
    metrobus Posts: 1,784 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    hungerdunger,because when you take into account the compounded interest
    you are only guaranteed around 4.7% per year.

    Which is pretty awful considering the terms you must adhere to.

    Your 4.45 % calculation for the 4 year is spot.
  • oldfella
    oldfella Posts: 1,534 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    the existing one has the maximum quarterly loss and growth capped at 2.5%, total payout is an addition of each quarters figures - so not only does it limit the payout over the period, losses over the period are accumulated as well - and to get the maximum, every quarter has to exceed 2.5%.

    breathtakingly awful !
  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    opinions4u wrote: »
    You're basically trading a higher return elsewhere for the possibility of gaining 62% of the growth in the FTSE.
    But it doesn't say that - it says '62 percent growth' - this might be based on '162%' growth in the FTSE for all we know.
    .....under construction.... COVID is a [discontinued] scam
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Milarky wrote: »
    But it doesn't say that - it says '62 percent growth' - this might be based on '162%' growth in the FTSE for all we know.
    Good spot. Will delete my post.

    Thanks.
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