RBS 51/2 year bond

DD_crash

I am looking to invest £40,000 and have spoken to an adviser at RBS. He told me that they have a new product called the 51/2 year bond which will give 30% provided that the stock market doesnt drop below the level that it is when the bond starts and if it ends at a lower level I get my investment back. The last 12 months are averaged on a monthly basis to smooth it out. Does this sound a good idea?

alanq

I can't see the product online.

Are you sure that is wasn't UP TO 30%? Is your money accessible during the 5 1/2 years?

Even 30% equates to something of the order 5% compound interest. You can get over 4.5% return without stock market linking by depositing in a fixed rate bond with any of several providers.

Often with RBS fixed term products the term starts up to a couple of months in the future and money earns just BOE base rate until the fixed start start date.

ctdctd

alanq wrote: »

I can't see the product online.

Are you sure that is wasn't UP TO 30%?

It will be a GEB with 30% (or possibly upto 30%) over 5.5 years - so about 5% AER tops

dunstonh

You can get better terms on a structured product via an IFA assuming a structured product is what you really want. RBS ones rarely come out that good.