Yorkshire building scociety 8.5% bond

Fen1

Does anybody know anything about this? I saw an advert in the window whilst on holiday, but didn't go in to ask. Cannot find anything on their website.

baby_boomer

Apparently they offered a 4 year fixed rate bond for 8.5% in 1994 .

Today it'll probably be a savings rate for 1 year as long as you put the equivalent in a 5 year investment bond from which they can get your money back in charges.

Or it could be a guaranteed investment rate on a bond for the first year - leaving them another 4 years in which to claw back what they "gave" you in the first year.

Either way, leave well alone.

alanq

Perhaps you are thinking of the 6 year Guaranteed Investment Account which returns A MAXIMUM of 60% at the end of 6 years which would equate to approx. 8.5% AER.. The actual returns depend on the performance of the FTSE 100.

"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

baby_boomer

Ah 8.5% maximum!

What a dodgy sales technique from a mutual given that it was the 8.5% which caught your eye .

Not "maximum" or "risk" .

These structured products provide guaranteed commission to YBS & Credit Suisse, but the returns for members are rarely as exciting.