HSBC Ivestment

1converse

First time on the forum.
All my banking is with HSBC.
I have no investment experience.
I have £20,000 to invest, which I am prepared to put away for about 3 years, I'm 62.
HSBC have offered me their Stockmarket Linked Savings Account.
Which is tied to the FTSE 100 over 3.5 years.
If the FTSE goes up or stays the same, the interest rate is 18% (4.84% AER)
If the FTSE goes down the interest rate is 2% plus capital returned.
I have seen other questions about this on the forum, is the situation still the same.

I also have a cash ISA with them which is earning next to nothing. so do I change the ISA within HSBC or transfer,

Thanks in advance for any help with this.

ses6jwg

transfer the cash isa out HSBC are awful really awful for savings products.

you can get a guaranteed 4.26% in a 3 year bond with principality. those stockmarket bonds are terrible.

claretmatt

They are looking to sell you what I would consider to be a sophisticated investment and therefore probably not suitable to someone with little or no investment experience.

You would also be buying into a stockmarket that is at its highet level since June 2008.

I would consider seeing a local IFA who will be able to review your full situation and recommend a suitable solution.

Stochasticity

So you get 4.84% AER if the FTSE 100 goes up.

You get 0.66% AER if it goes down.

You can get 4.26% regardless.

To justify gambling, you need there to be an 86% chance of the FTSE 100 going up.

Steer well clear of the HSBC Stockmarket Linked Savings Account.

1converse

Thanks to every body for your advice.
Have canceled the application for the Stockmarket Linked Savings Account.
Now have to sort out a better rate of interest.
Thanks again.

Loughton_Monkey

1converse wrote: »

Thanks to every body for your advice.
Have canceled the application for the Stockmarket Linked Savings Account.
Now have to sort out a better rate of interest.
Thanks again.

Agree.

Bank investment products tend to be very miserable, lacklustre, and expensive.

HSBC are a decent bank for current accounts etc. [First Direct is even better]. But your cash ISA needs a far better home, and for investments, you should either be going to a good IFA, or if doing it yourself, try a platform like HL or Cavendish.