RBS UK Growth Early Kick-Out Plan

dunstonh

Generically I don't particularly like structured products. However, sometimes the terms issued and the risks that exist come together to offer one that can meet an objective. An income one paying 8% p.a. using a low risk market counterparty and return of capital on maturity as long as the FTSE isnt more than 50% lower than its current level (and only reviewed at maturity and not during the term) could be a sensible level of risk for someone to take who relies on income. It could prevent them from having to erode their capital to maintain living standards. So, whilst there is a potential risk, they were going to lose money anyway if they didnt use investments.

They are oversold by the banks though. Low skilled sales reps selling to low knowledge consumers using a product that uses the magic words "capital security" or "no charges" (the latter being a lie but implicit charging is often misrepresented).