Barnsley BS Protected Capital Account

zebb

I would be grateful if someone could clarify the following for me.

I understand that we are protected for upto £50,000 for savings in a UK based bank or BS.

However, Barnsley BS (see barnsley-bs.co.uk/investments) are advertising a 5 (&6) year Protected Capital Account Tracked Growth which guarantees your money back plus a minimum return with the potential for further growth depending on the performance of the FTSE.

If one invested in this (or similar offers from other Building Societies), would one still be protected as per a straightforward savings account?

Thanks in anticipation, Zebb

atypical

"Your money is protected in the same way as any other bank or building society account you may have. Yorkshire Building Society is therefore obliged to repay your original investment in full at maturity. Should Yorkshire Building Society default there is no protection or guarantee provided by Credit Suisse or any other third party. Yorkshire Building Society is a participant of the Financial Services Compensation Scheme which provides limited protection to deposit holders."

I would read that to mean that it is protected by the FSCS £50,000 guarantee. Though I thought most of these structured products were guaranteed by a third party. Link here.

zebb

atypical wrote: »

"Your money is protected in the same way as any other bank or building society account you may have. Yorkshire Building Society is therefore obliged to repay your original investment in full at maturity. Should Yorkshire Building Society default there is no protection or guarantee provided by Credit Suisse or any other third party. Yorkshire Building Society is a participant of the Financial Services Compensation Scheme which provides limited protection to deposit holders."

I would read that to mean that it is protected by the FSCS £50,000 guarantee. Though I thought most of these structured products were guaranteed by a third party.

Hi. Thanks for replying. I too noticed this but was worried by the second sentence - my underlining - above. The first sentence implies it is risk free but I understand that Structured Products per se are a (very) risky investment.

So I'm still confused. Is this guaranteed or not?

Sceptic001

Before investing in a product like this may I suggest you Google "guaranteed equity bonds" to consider some of the arguments against.