Nationwide Guaranteed-equity-bond: Is this a good investment?

booklover

Hello everyone

I hope I haven't made a foolish decision, but today I transferred my ISA (!0k) into this account, Nationwide Guaranteed-equity-bond as it sounded good.

http://www.nationwide.co.uk/investments/guaranteed-equity-bond/default.htm

Anyone have any thoughts on this please?

Many thanks in advance


Fiona

gozomark

not great - you will get a return of between 0% and 6.99% per annum for 6 years. Alternativrly you could put it in a 6 year fixed account earning around 5-5.5%

apt

I am also not a fan. Compared to investing in the stock market you get no dividend income, are tied into a specific time period and your gains are limited if shares take-off in value. Also the capital back guarantee is not as reassuring as it sounds as your money would be eroded by six years' worth of inflation.

booklover

thanks everyone

I wonder if i can cancel it?/

Fiona

dunstonh

You can get nearly 8% p.a. at the moment on the whole of market without the need for the FTSE to grow.

There are some good GEBs around at the moment (often is just after a major market event). However, most of the time the one's offered by the banks and building societies are pretty low quality.

ses6jwg

What about a low to medium risk trust fund?

Interactive Investor has a good selection.

Even some of the low risk ones offer good prospects

booklover

ok can anyone give me any examples, any names please

What about Abbey would it be good?? I am so confused

many thanks in advance

Fiona

dunstonh

What about Abbey would it be good??

Theirs are pretty awful.

ok can anyone give me any examples, any names please

It is a regulated product area so there are limitations as to what can be said. The better ones tend to come from Arc, Premier and Barclays (the IFA versions as you can often get cashback on those if you use an IFA on execution only but not if you use a bank).

I am so confused

See an IFA then. Even on commission basis it will cost you nothing compared to looking at the banks and at least you get whole of market instead of tied to one.