Abbey- 1 year stockmarket savings bond

skorpio40

Any thoughts on this product?

dunstonh

I cant find a one year stockmarket bond. Abbeys current range finished today with the new range being launched on 3rd July.

There is no mention of a 1 year version with the periods being 5 to 7.5 years depending on version. All of which are are poor investments (GEBs). Abbey would like you to take them out because the Spanish owners make lots of money on these due to the hidden charges.

http://www.abbeystructuredproducts.com/series_3/products_page_index3.php

skorpio40

http://www.abbey.com/index/future/savings_index/fixed_term_index/fixed_term_1_yr_stock_linked.htm

try this link

PBA

This is an interesting product. It's something that wasn't particularly popular when it first came out, but is attracting some interest now as the first issue matured with a return of around 14%, and the latest issue paid around 9%. However it does only pay 60% of the growth of the FTSE 100, so "serious" investors won't be interested.

In my view, it's worth viewing in a similar way to premium bonds - worth a punt if you're happy to take a small gamble with some of your money without risking your initial investment, but not something to have all of your money in.

dunstonh

You would think they would have the list of products in the same area!

The FTSE100 is the weakest of the UK indexes to track and you only get 60% of the performance. Pretty poor investment aimed at the inexperienced bank customer. Easy to sell but not very good.

skorpio40

Thanks for the replies people. I hav £1000 over what i need in my current account (transfered from my savings account that was paying some ludicrous rate). I was going to put this money into my ISA next tax year. The current account pays 2% now. I know i could get better elsewhere but iv been banking with same bank for 30 years and theyve always been ok with me. Ok so iv fallen into the "anything for an easy life trap" but i do want t keep this account with them. Oh another thing, i live in N Ireland and as u know the choices are limited here.

skorpio40

Forgot to say that i would be prepared to take a wee risk with it untill then and because that abbey bond gauranteed your initial investment back i thought i would try it.