Egg FTSE bond matures: Damn!!!

XRS

It was just my wife who had the bond, but as far as I recall there was only one bond around six years ago, so I can't see why the OP's terms would be any different. Granted, the capital was credited to her savings account on Friday, but I fully expect the interest to be there early next week.

XRS

Just checked online, and no sign of the interest, so have asked them when my wife can expect to receive it. I'll update the thread when I hear.

StevieJ

sabretoothtigger wrote: »

Thats true, if you had invested in a normal ftse tracker for six years without checking back at all then you would have lost money.
So for you this is one of the few times one of these products has done some good

What about the dividends?

sabretoothtigger

Good point, I'd have to check that on ft.com
Long term, dividends form the majority of a proper (non speculative) return apparently


ft doesnt show dividend return for the ftse as the companies would have changed over that time I guess.
Overall fall was about 10% which might have been counteracted by dividends over 6 years, I would hope so anyway

XRS

OK, this is interesting. I have just checked the account again, and now, four days after it matured and they transferred the capital to my wife's Egg account the terms appear to have changed. Maturity date is now 11th March (no withdrawals allowed) and the value is to be based on the average closing FTSE between 11th March 2008 and 11th March 2009. No doubt this will further reduce the interest we receive (around £70 if the FTSE stays where it was last night), but I'll just be pleased to get the cash and run!

alanwsg

Oh yes, I've just seen this as well,
But surely this is better for us... the FTSE average over the last year will be higher than it's value last week, or have I got the wrong end of the stick?

(it's around 3690 now, it closed at 5690 on 11Mar2008, average around 5014 over the last year, figures from Yahoo! finance)

So, return over the full period is (5014 - 3555) / 3555 = 41%

Hmm .. that would mean a return of over £4K, this sounds too good to be true, I'll report back tomorrow when it's supposed to mature.

XRS

Unfortunately, it's the daily average, so by taking out a few days' worth of FTSE closing prices around 5,600 or 5,700 and replacing them with 3,600 or whatever, you are lowering the average.

But yes, the return should be around 41% (don't forget it would have been over 60% if the FTSE had stayed around it's level on 6th March 2008, but hey ho, con't win them all).

alanwsg

Well if it really is 41%, them I'm happy,
It may not be as good as 60% but it's one hell of a lot better than 0%.

XRS

Check your account! The interest arrived today, and it was based on the FTSE to 6th March 2009. Already on it's way to a higher interest account

All the best.

alanwsg

Yup: £3315 paid out after tax.
My flabber is ghasted!