Barclays Growthbuilder

Colin_W_2

I have just seen a Barclays financial adviser who tried to sell me their growth builder investment plan. It's a six year tie in but he claims can deliver 39.6% profit with the capital secured. This sounds too good and also very similar to Equity Bonds from the Post Office.
Does any one have any comments?
Many thanks Colin

granville_2

Don't touch it with a barge pole!

I was offered exactly the same product a few weeks ago whilst opening an account in Barclays.

The return ain't that great and your money is tied up for *6* years!

Colin_W_2

Thank you Granville, much appreciated. I had a concern over the tie in plus it would rely on the stock market really performing well each of the six years in order to hit the return. I think for reasonable access the West Bromwich 3% growth looks 'ok'. The thing that really put me off about the Barclays chap was his in ability to listen.

dunstonh

It's a six year tie in but he claims can deliver 39.6% profit with the capital secured. This sounds too good

Actually it seems pretty awful. Its a capital secure with a cap of just 39.6%. An uncapped version would be better. There have also been recent ones with caps of double that.

and also very similar to Equity Bonds from the Post Office.

Post Office ones have nearly always been poor quality. Martin used to do an article on them here but the regulars on the board were always pointing out how poor quality they were and the article vanished, never to reappear.

Does any one have any comments?

structured products are designed to be sold by low skilled sales staff to low knowledge consumers. This is why the banks over sell them. Occasionally, you can pick up the odd good one on the whole of market (some last year for example or the year before - although not many). However, when you realise the costs and analyse them compared to conventional investments, you realise that you can usually get better alternatives.

sabretoothtigger

39.6%

Thats about 5.7% per year which doesnt sound so bad for a normal savings account but if its not guaranteed even then not so much!

Lokolo

You also aren't guarenteed that rate. You just get a rate of 6.6% a year if the FTSE is higher than the initial investment. So you can only get the headline rate if the FTSE raises every year for the next 6 years.

PC_Gabriel_Kent

Barclays investments products like this are truly poor. They really are shocking and you will do far better with an IFA. Barclays have never offered any decent investments, as others have said do not touch them with a barge pole.

THE_NANA

Now i am confused. We went to see Barclays about a Growth Builder. Where's the best?

THE_NANA

Now I am confused. Where do I invest?

Mikeyorks

Why confused? Do you specifically want a product similar to this where the performance of an index, you have absolutely no control over, dictates whether you get any added value on your money. Having tied it up for 5 / 6 years?

There are thousands of 'investment' products that don't depend on a single roll of the dice.

dunstonh

Now i am confused. We went to see Barclays about a Growth Builder. Where's the best?

Barclays have about 8 plans running at the moment. (not sure their branches offer the full range). What made you want that one?

Were you after full capital protection on maturity or soft protection? Are you looking for it to be held in an ISA or unwrapped?
if unwrapped, is it capital gains tax or income tax you want it taxed under?
Do you want it under investment FSCS protection of cash FSCS protection

Barclays are unlikely to have spent much time on these points as they sell their own product and only offer a limited choice that doesnt cover all options. If you really want a structured product then see a local IFA. They have access to the Barclays plans if they happen to be best for you but they also have access to the whole of market and you may find that once you understand how they work and what they do that other investment options could be better for you.