Nationwide new savings plan.

lisyloo

Because the return on GEB's is generally very poor.

Hmm.......compared with what?
normal savings account where my return is compromised by 40%?
or unit trusts where my capital is at risk?

That's a whole debate is itself, but I'm not sure that poor return on it's own makes them bad for everyone on the risk/reward spectrum.

However I don't think they are suitable for us mainly because they use cash ISA allowance and we only have S&S allowance available.

We'll be talking to advisor but will probably invest in S&S ISAs through a fund supermarket.

Jonbvn

lisyloo wrote: »

Hmm.......compared with what?

Both a normal savings account and stocks and shares investments.

You are taking on a similar risk to a direct investment in the FTSE, with a lot of the upside (dividends) removed. This far outweighs the guarantee that you will at least get your money back.

Far better to invest directly in S&S and hold a reasonable amount of cash in savings (as you propose to do).

Jonbvn

lisyloo,

See this excellent post from jamesd showing how a GEB can easily be beaten by a combination of savings & S&S.