Birmingham Mid GEISA 50.40% AER 5 YEARS

Mind_Overload

Calchas wrote: »

I would value dunstonh's opinion too.

How do we steer him onto this thread when he next logs on?

PM them the link!?

Calchas

Applied online for the Isa and ended up with literature appertaining to the bond.

I then had a rather fractious conversation with a CSA, who, obviously under instruction, enquired as to whether I had adaquate funds for emergencies!

I (rather impolitely, I am sorry to say) suggested that rather than him worry about my understanding of my own finances, he pay more attention to his own board of directors and whether they have enough reserves.

They certainly didn't before us tax payers rode to the rescue!:rotfl:

lisyloo

I (rather impolitely, I am sorry to say) suggested that rather than him worry about my understanding of my own finances, he pay more attention to his own board of directors and whether they have enough reserves.

Excellent.
Like ur style.

I'm tempted byt this (after cash ISAs for liquidity).

opinions4u

Calchas wrote: »

Applied online for the Isa and ended up with literature appertaining to the bond.

I then had a rather fractious conversation with a CSA, who, obviously under instruction, enquired as to whether I had adaquate funds for emergencies!

I (rather impolitely, I am sorry to say) suggested that rather than him worry about my understanding of my own finances, he pay more attention to his own board of directors and whether they have enough reserves.

They certainly didn't before us tax payers rode to the rescue!:rotfl:

Irony of the finest nature!

Also ironic is that they probably ask the question to prove to the FSA that they are selling their products fairly and reasonably.

The same FSA that oversees banking in the UK and appear to have taken their eye off the ball big time over the past couple of years.

Calchas

My cheque was cashed yesterday.

I guess the answer now is to forget about it for five years!

Current and probable future interest rates were the deciding factor in my decision.

dunstonh

I missed this thread and the product page has now gone so I cant see the terms. However, I would be surprised if it was any good given their past history when it comes to issuing GEBs.

Its a waste of an ISA allowance if you have more money above this (i.e. use the ISA allowance normally and put £3600 unwrapped). There is no tax gain using the ISA unless £3600 is all you had to put aside.

Calchas

The circumstances as far as I was concerned was that I hadn't used up any of my tax free allowance.

I wanted it in cash.

This product became more and more attractive purely because what has and is happening to interest rates.

If the worse comes to the worse, in five years I will still have £3,600, I will have used this years allowance and I can live with the loss.

Best case scenario is that it will be worth around 5.4K

The determining factor is if the average of the FTSE 100 (16/1/13 - 27/1/14) is higher than the near future average (16/2/09 - 18/5/09).

Dooooooooooooooonut

You can model this as a fixed account with the interest invested in a digital option on the FTSE (or alternatively one being written, makes no difference)... And if you do so you'll find it's rubbishly priced by quite a few per cent (I haven't checked this but know damn well it will be the case - always is). Up to you though... If you're really interested just stick it in a decent yield savings account and buy a FTSE call with the discounted interest at least then you'll have unlimited upside.

malc1603

The details for this can still be found in Google cache (for the time being at least - don't how long these things are stored) if anyones interested:

http://209.85.229.132/search?q=cache:9kwbuQz389EJ:www.askbm.co.uk/savings/t/geisa/product.asp%3Fid%3D207+Birmingham+Midshires+GEISA+5+year&hl=en&ct=clnk&cd=2&gl=uk

Calchas

This is a Cash ISA linked to the performance of the FTSE 100 Index over a 5 year period. You'll receive 50.40% tax free (8.50% AER*^) as long as the average# of the FTSE 100 Index hasn't fallen between the inital and maturity Index readings over the 5 year term. If it does fall, because your money is invested in a deposit account and linked to the FTSE 100 Index rather than invested in it, your capital will be returned at maturity under the terms of the account.
Benefits

• The FTSE 100 Index doesn't even have to go up in order for you to earn 50.40% tax free (8.50% AER*^) return on your money - it just can't go down.
• This is a deposit account and you don't invest directly in the FTSE 100 Index, therefore your capital will be returned at maturity under the terms of the account.
• You'll also receive a variable interest rate^^ from your investment date until the issue date of the ISA (16 February 2009).
• We'll send you a certificate of investment giving you details of your investment including the Initial Index Level and the amount you invested.
• You may withdraw your funds or close your ISA before the full term. A charge of 5% will apply on the amount withdrawn (see Terms and Conditions). Your remaining funds still have the potential to earn 50.40% tax free/ (8.50% AER). If you close your ISA early you'll only receive your remaining funds plus your early investment interest rate^^ (if applicable).
• Additional deposits can be made during the offer period (until 31 January 2009), as long as the issue isn't fully subscribed.

5 Year Trigger Guaranteed Equity ISA (Portfolio 5)Request an application£3,600
Minimum & maximum investment Withdrawals are only allowed by post subject to an early withdrawal charge of 5% on amount withdrawn Placed in a deposit account and linked to the performance of the FTSE 100 IndexEarn 50.40% tax free (8.50% AER*^ fixed) as long as the average of the FTSE 100 Index taken at the start of the account and end of the 5 year term hasn't fallen
^ Assumes investment is made on the 31 January 2009.
Request an application form for the 5Year Trigger Guaranteed Equity ISA (Portfolio 5)
Things you need to know

• Each portfolio of this type of ISA has a limited amount of money that can be invested in it. If the limit is reached the portfolio will be closed.
• You may be able to transfer deposits made into other Cash ISAs from previous tax years.
• Your ISA will mature in 5 years - to have the potential of higher returns, your funds must be invested for the full term.
• The minimum and maximum you can invest is £3,600. You may be able to transfer deposits made into other Cash ISAs from previous tax years.
• You're only allowed to open one Cash ISA per tax year.
• The cost of capital protection is included in the returns we offer.
• This ISA is not suitable for those who need access to their money before the end of the full term.
• Don’t forget inflation would reduce what you could buy in the future with your investment.
• Potential interest will be paid upon maturity (see Terms and Conditions for details).
• We use a special averaging measure at the start and maturity of the ISA. Please see the product information for details before applying.
• If the value of the FTSE 100 Index calculated by us at maturity is lower than the value calculated by us at the start of the ISA, you'll only receive the early investment interest rate^^ payable from the date of your investment to the start of the ISA on 16 February 2009 plus your original capital.
• Information on the current and past performance of the FTSE 100 Index is available from www.bloomberg.co.uk.
• But remember past performance is not a guide to future performance.
• #Please refer to 4a in the Terms and Conditions. To assess the FTSE 100 Index performance over the period of your investment, we use a special averaging feature at the start and maturity of the ISA, this averaging may restrict or improve the return you receive.
  ^Assumes investment is made on 31 January 2009.
  ^^Direct Saving Account variable rate 3.15% tax free/AER* and correct as at 1 December 2008.