FTSE 100 Kick out plan

gozomark

you can get fixed rate ISAs as well

baronshouse

Ok so i just need to look for something with the highest rate? With bonds is there any limit on the amount i can invest - i know i am limited with an ISA, Also what happens after 5yrs in the bond do you have to take the money out? can you leave it or re-invest?

cashbackproblems

If your willing to hold for that long imo your gona make much larger returns sticking your money in LBG, BARC or even RBS (tho to a lesser extent) and by 2010/11 LBG will start paying dividends and barc next yr, so win win situation as the main gains in share prices will be 100-200%.

baronshouse

Sorry - what is LBG?? We plan to use the saving plan similar to the endowment so we dont want to touch it for 12years! This sounds like a really good plan, especially the gains.

cashbackproblems

baronshouse wrote: »

Sorry - what is LBG?? We plan to use the saving plan similar to the endowment so we dont want to touch it for 12years! This sounds like a really good plan, especially the gains.

Lloyds Banking Group. Some ppl may see it as a risk but anyone whos done any bit of reseach will realise how long term (especially 12 yrs!!) all the big banks will recover and start producing the kinds of growth/dividend payments we saw just a year or so and will return (abeit lower level).

baronshouse

Ok so just to clarify - i am best putting it in a fixed 5yr bond with LBG,
Thank you so much to everyone for all your help and advice X

cashbackproblems

baronshouse wrote: »

Ok so just to clarify - i am best putting it in a fixed 5yr bond with LBG,
Thank you so much to everyone for all your help and advice X

Sorry i think uv misunderstood! Im talking about buying shares in those companies for a long term investment, do you know anything about trading? WHen investing in banks you dont need to know much just how to buy and how to spend the dividends which will eventually start to be paid, especially once rbs and lloyds have reduced their participation in the govt asset protection scheme.

You can buy shares online v cheaply (£10 per transaction, no commissions etc) on www.iii.co.uk, or if you prefer go to barclays and buy through their brokers.

Ian_W

cashbackproblems wrote: »

Lloyds Banking Group. Some ppl may see it as a risk but anyone whos done any bit of reseach ....

I suspect THIS GUY may have done "a bit of research" and he thinks there is still a significant risk that LBG and/or RBS may be nationalised.

Personally I think he's wrong but he's vastly more experience than me (or you, I'm guessing?).

baronshouse

Obviously i have NO idea in trading!! Or bonds/ISA etc - hence why i have a poorly performing endowment, thought it was a good thing at time to keep it running when i changed my mortgage for long term saving. I have about £8000 to invest so will look at your recommendation and ISA, but to be honest for me to invest in shares i would need the confidence to know what i'm doing and i have no experience!. I also want to continue to pay into something monthly as i would do the endowment. At least i am not using it all to pay my mortgage!!!

Thanks for everything

gozomark

cashbackproblems wrote: »

anyone whos done any bit of reseach will realise how long term (especially 12 yrs!!) all the big banks will recover and start producing the kinds of growth/dividend payments we saw just a year or so and will return (abeit lower level).

I agree with what you say. Unfortunately you as a shareholder might well have been wiped out by nationalisation in the meantime