Alliance and Leicester 15% guaranteed?

Rhymsta

A friend of mine says he has been into Alliance and Leicester and has been offered an investment proct giving him a guaranteed return of 15% per annum.....
I'm sure he has got the wrong end of the stick or has missed some vital piece of information like also having to put most of the investment into something like a non-guaranteed investment bond or it not being per annum. However, I have tried to find any mention of 15% on the A&L website without success
Anyone any idea exactly what he might have been offered?

Pyewacket338

I think I had this offered to me, you put a set amount into one account, the rest is in some kind of investment bond, if I remember right, you have a 70/30 split between the accounts and it's in there for 5 years.
The details are on posters in the branches.

Aegis

Rhymsta wrote: »

A friend of mine says he has been into Alliance and Leicester and has been offered an investment proct giving him a guaranteed return of 15% per annum.....
I'm sure he has got the wrong end of the stick or has missed some vital piece of information like also having to put most of the investment into something like a non-guaranteed investment bond or it not being per annum. However, I have tried to find any mention of 15% on the A&L website without success
Anyone any idea exactly what he might have been offered?

You'll find that it's a guaranteed equity bond, and that the 15% is over the whole term. For that he'll get exposure to the FTSE 100 with a capped limit on how high the stake can go, and in short it will almost certainly be a rubbish product. Almost certainly it would be far better to go for some savings for the secure part and some investments with what you're comfortable investing.

Rhymsta

Thanks guys - sort of confirms what I thought also... if it seems too good to be true and all that!

dunstonh

Banks retail basic products with some easily run off headline features. Words like guarantee go down well. However, when you look at the terms in detail, you see the catch. Problem is that too many typical bank customers dont have the knowledge or inclination to see if its any good or not

Mikeyorks

They offer up to 21.5% ...... but that's over the whole period (6 years in that case) not per annum.

http://www.alliance-leicester.co.uk/investments/index.aspx?ct=primarynav

(click on Guaranteed Accounts)

Some are GEBs some are funds. If you want a GEB .... there are much better on offer. You're very much hostage to fortune with a GEB ...... but now is a better time to be purchasing one ..... than sitting on one about to mature!