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Found a brilliant return on an ISA... but why wasn't it on MSE?
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That's an important point - these products are aimed at savers who hear the words "high cash interest rates" and miss the bit about "expensive stock-market-linked investment product".Only by putting another equal amount into another of Santander's wonderfully performing funds.
Try to keep up people, this is a good rate to con you into doing something you were not looking to do.
Like all salesmen (not just in banking), he will have emphasised the bits he wanted you to hear and skirted around the scary stuff.I do realise that financial advisors are also salesmen ... and left the bank thinking this was a good deal. Maybe I missed a key pointYou've never seen me, but I've been here all along - watching and learning...:cool:0 -
opinions4u wrote: »I think it's a case of taking a snapshot in time can be misleading.
I didn't have time to copy down all the figures but it also failed to beat the market or peer group over 6mths, 1 year, 3 years and 5 years which I would think is pretty poor performance - although not at all unexpectedRemember the saying: if it looks too good to be true it almost certainly is.0 -
It's ahead of the sector over 6mths, and it has been before. All depends where you pick the end-points.I didn't have time to copy down all the figures but it also failed to beat the market or peer group over 6mths, 1 year, 3 years and 5 years which I would think is pretty poor performance - although not at all unexpected
OK, I've got my £10,200 ISA money to invest for a year, and I want half of it in instant-access cash. I can take the 5.5% and put the rest in the Cautious Portfolio. Or, I can settle for 2.8% on the cash, and now I want a low-risk fund that will outperform the Santander Cautious Portfolio by 2.7% over the next 12 months.
This is where I need that league table that everybody has in their head but nobody will admit to.
An economic crystal ball will help as well, since I really need to know whether it's a good time to go for something riskier or something more cautious."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
You're still not listening!
Get your point whatever percent in the cash ISA for one year and put the balance in a Santander fund and pay 5% for the privilege! Find a cautious fund by any other manager, put it through, say, Hargreaves Lansdown for zero percent upfront and a portion of the annual fee remitted to you. YOU COULD EVEN USE THE SANTANDER FUND IF YOU MUST. Though why you want to use any bank's fund is beyond me.
However, you seem committed to your approach, so proceed with my best wishes.0 -
No, that would be silly, but that's not quite the deal.Get your point whatever percent in the cash ISA for one year and put the balance in a Santander fund and pay 5% for the privilege!
There's a set of funds-of-funds created in 2003 and sold through the usual channels with the usual kickbacks (hey, your IFA needs to eat). They're sub-funds of an OEIC and the price after charges is the NAV. They aren't linked with the Super Flexible ISA or marketed through bank branches.
Then there's another set of things, which are newer, and which are only sold through the bank, with or without the cash ISA These things are a lot less transparent and it's not clear what relation they have to the OEIC.
It's stated that there are no initial charges. What's not clear is whether that means one can actually buy and sell assets at NAV, subject to the stated TER (1.88% max), or whether it's only technically true because they've found some other way to bury a rake-off.
1.88% is enough to run a fund on, even with a trail commission to a supermarket and a kickback to the customer. It doesn't cover a 5.5% ISA, but they probably figure on people only getting 5.5 for a year and keeping their investments for longer.
I'll be quite surprised if there isn't a gotcha here, but I'l like to know where it's hiding before I write the thing off.
The other issue is the true performance, before charges and expenses. What surprises me is that everybody wants to quote the folklore as if these were normal times, and nobody wants to talk about the state of the economy. We're in a time of unprecedented uncertainty - the economists and the markets don't know whether we're headed for chronic deflation or hyperinflation, though only the politicians say neither. Any investment is a huge punt, and one blindfolded fund manager with a pin is pretty much the same as another."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Any investment is a huge punt, and one blindfolded fund manager with a pin is pretty much the same as another.
Hence using a tracker fund at least removes that part of the risk and at a vastly lower TER. 0.27% vs 1.88% pa makes a significant difference to the amount you'll have after 10 years.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Yes, but so does 5.5% vs 2.8%. If the scheme works at all, it would only be on the basis of not keeping the investment any longer than the cash ISA bonus.Hence using a tracker fund at least removes that part of the risk and at a vastly lower TER. 0.27% vs 1.88% pa makes a significant difference to the amount you'll have after 10 years."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Yes, but so does 5.5% vs 2.8%. If the scheme works at all, it would only be on the basis of not keeping the investment any longer than the cash ISA bonus.
From what I've seen online about this product, the investment is in a 4- or 6-year structured product. These are almost certain to pay back less than you put in if you cancel them early.0 -
We have been offerred the same deal. Between us we have circa 60,000 in cash isas which annual rate is coming to an end. Sananderr said to split i.e 30,000 cash isa with a rate of 3.5% base rate = 4% and invest the other 30,000 into an investment portfolio (Cautious or balanced)
Would we be better transferring 30,000 to say halifax at 3% ready for a better offer in the future and investing the other half or thereabouts into a established managed fund say Jupiter Merlin Income portfolio or do you think the Santander is a better offer0 -
Have you actually read through this thread?We have been offerred the same deal. Between us we have circa 60,000 in cash isas which annual rate is coming to an end. Sananderr said to split i.e 30,000 cash isa with a rate of 3.5% base rate = 4% and invest the other 30,000 into an investment portfolio (Cautious or balanced)
Would we be better transferring 30,000 to say halifax at 3% ready for a better offer in the future and investing the other half or thereabouts into a established managed fund say Jupiter Merlin Income portfolio or do you think the Santander is a better offer
The one major thing to take from it is that investment products from high street banks tend to offer poor value because they are restricted to selling a limited range of products, rather than 'whole of market' and usually have high charges.
I would suggest avoiding banks' investment offerings generally and especially Santander's.0
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