YBS Guaranteed Investment Account

alanq

I haven't seen this mentioned before. There was an ad in today's newspapers.
"Pays 5.00% gross pa/AER as long as the FTSE® 100 Index doesn't fall below 60% of its Initial Index Level at any time during the 6 year investment term."

But note "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_income/annual-income.html

Reaper

It doesn't sound worth doing to me. Many economists expect deflation to be followed by a period of high inflation, at which point being in a fixed rate account that will heavily penalise you for withdraws within 6 years may start to look like a bad idea.

cocktail

you have rightly picked out the cons of this account