Guaranteed Investment Account with YBS..losing money?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 2K views
kejukeju Forumite
6 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I currently have a mini ISA with Yorkshire Building Society. I originally invested £3000 but when I received my statement recently it says it is only valued £2910. The description of the account is :

The Guaranteed Investmentment Account is a deposite account with a four year investment term starting on and including 20 September 2007 and ending on and including 20 September 2011. The Plan allows investors to benefit from potential UK stock market growth with the comfort of both 100% capital security plus a minimum growth of 16.5% (or, if higher, 50% of the Index Growth) provided that the Plan is held for the full investment term....

What does the £90 loss i've made mean? And am I guaranteed hat aslong as I leave the money until the maturity date I will get it back plus the 16.5% growth repayment?

Replies

  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    It could be a few things. An initial charge maybe. 3% of £3000 is £90 and that seems likely. Some that show an initial charge do refund it on maturity (penalises early surrenders but not those that go to the end).

    Also, some of the GEBs do show a running value as the guarantee kicks in at maturity and not as you go along (so those surrendering early dont benefit at the expense of others).
    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.
  • kejukeju Forumite
    6 Posts
    thanks I gave KeyData a call and they said it's just a running value and aslong as I leave it to maturity I will get my original deposit back plus minimum 16.5%.
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