YBS offering 32% interest

pamelaj_2

Hi,
Yorkshire Building Society is offering 32% min interest if you commit your money for 7 years. Not being particularly financially savvy but able to spot a good interest rate when I see one I was wondering if anyone can enlighten me as to what the catch is or if it's as good as it sounds?
http://www.banking-business-review.com/article_news.asp?guid=3368B976-2934-46A8-B820-20F36BE1F86F
Ta

purch

The 32% return is over 6 year term of the GEB, not per year, which I guess is about 6.5% p.a. with compounding.

SilverScooby

Hi
I make it that 32% over 6 years works out as 4.75%pa compounded, so doesn't seem great to me...

opinions4u

The return will be between 32% and 62%. That's an AER of between 4.7% and 8.4%, depending on the performance of the FTSE.

Mid-range is around 6.5% which you can get without tying up your capital by looking elsewhere.

It's a duffer.

(edited after earlier error - sorry guys!)

alanq

"† The Guarantee is the obligation of Credit Suisse International to repay the capital invested in the deposit in full at maturity. Should Credit Suisse International default, there is no guarantee provided by any third party.
http://www.ybs.co.uk/investment/gia_web/guaranteed-investment.jsp?int_cmp=gia16_hp_aug08"

These type of account results in several years' interest being credited in one year which could push some tax-payers into a higher tax bands.

Lokolo

Also 7 years is a long time to commit to a bank!

We could all be dead by Wednesday

opinions4u

Shhhh I lost a year somewhere!

:mad:

Thanks - and post corrected.

opinions4u

I'm going to have a long lie down.

Change to advice: It's a crock - don't touch it!

opinions4u

sloughflint wrote: »

I make the upper percentage 8.37%
Haven't looked at the link yet.
edit:I've just realised 7 years !! ( I lost a year too)
so shouldn't that be between 4.05% and 7.13%?

Yup.

I feel silly. :eek:

opinions4u

I am going to stop posting on this!!

It is six years.

You can use an ISA wrapper on the minimum investment.

I still think it's distinctly average and wouldn't touch it with a bargepole.

opinions4u

Blame other posters for misleading us and sneak out quick.