Saffron 5% Fixed Rate 1 Year Cash ISA?

jamesblue

I thinking of moving my previous years ISAs and this year allowance to max out the Saffron 1 Year 5% ISA £45000.00 and they require you to put in £3000.00+ in the Credit Suisse Protected Capital Plus account.

Which "Potential growth of up to 63% gross (equivalent to 8.48% gross AER**)"

This looks really good to me, or am I misreading something?


Thanks

PS Sorry but I am a new user therefore I could not put on the hyperlinks, it is easy to find on their site.

anamenottaken

Be wary of "up to".

How long does the 5% last with the ISA compared with the length of time you risk the rest of your funds for a "potential" return?

Sceptic001

The key condition is:

Your ISA investment cannot be greater than your PCPA investment
http://www.saffronbs.co.uk/savings/display.product.php?categoryID=2&category=tax-free&productID=t3
So to get 5% fixed for one year you have to tie up the same amount for six years which could earn as little as 1.6% AER.

jamesblue

Thank you, I missed that one. I can now see it is not a good product, because even if I had 45000+ to put in the protected, I might not end up earning a good return on it.


Thanks