For the owld gits....

Seemore_2

Just thought it might be worth mentioning that Birmingham Midshires are the provider for Saga products.

chucknorris

digannio wrote: »

Thanks for that, there's some real food for thought there. I was hoping someone might pull a 4% one-year package out of a hat somewhere but, hey, there's probably more chance of me becoming the next Chancellor:rotfl:

Am I right then in assuming it would be better to take out a Birmingham Mid five-year bond at 5.1% and close it after one year if needs be and I'm still guaranteed to achieve slightly better than the 3.75% at Saga even after the 90-day penalty? And if things haven't eased it can sit there at 5.1% until they do. It sounds like win-win in taking out a five year bond with only 90 days penalty.

I just subscribed to this on the 1st Oct (it's actually 5.15%) I favoured it over other 2 year bonds as you say you can cash it in for a 90 day penalty, it's very likley that I will just let it mature but I like the option of gettting out before 3 years have elapsed and still beating the current 2 year bonds available.

Jonbvn

dunstonh wrote: »

It may be worth looking on part at some of the structured products. Whilst I am generally not a fan of these, you do normally get some good income ones after a market crash. 7% is possible at the moment. For some of the money, that may make a difference and make the small element of risk worthwhile.

Anyone considering structured products should be very careful of the counterparty risks, which are NOT covered by FSCS.

http://www.ifaonline.co.uk/professional-adviser/news/1533975/investors-wait-pay-fees-lehman-struc-prod-compensation

dunstonh

Jonbvn wrote: »

Anyone considering structured products should be very careful of the counterparty risks, which are NOT covered by FSCS.

http://www.ifaonline.co.uk/professional-adviser/news/1533975/investors-wait-pay-fees-lehman-struc-prod-compensation

It certainly needs to be considered but many of the structured plans available now have better gradings at counterparty risk. On many, Barclays have taken on the liability for example.