protected bond /guranteed capital bond help

thos147

My father has died and I have two bonds still current with natwest

pro bond is £10k with and ftse 100 start index of 5371.80 the start date is 15.08.2008 and end date is 20/02/2012

the guaranteed capital bond is 50k ftse 100 start index of 6229,80 the start date is 15.11.2006 and end date is 15/05/2012

I will be able to cash these in approx three months for I think their original value. I have also read that they are not very good.

My question is how are they doing currently I have looked on the ftse 100 and being no expert have deduced that they are not doing very well at all.

Also would it be advisable to let them reach maturity whereby I do not think they will make much

Any advice would be appreciated.

thos147

Could someone please help I really don't know what to do for the best

ses6jwg

it depends on the product, and what sort of averaging it uses and how it measures against the FTSE

at a glance it looks like you might get a decent return from the 10k one however the 50k you are likely only to get back your original investment plus a very marginal bit of interest

dunstonh

My question is how are they doing currently

What are the terms? There are thousands of these. Typically they issue for about 3 months at a time and the terms vary with each release.

Reaper

As above you will have to discover the details. There tends to be a lot of catches in the small print of these products. However as you are so close to maturity it is very unlikely to be worth paying the penalties involved in cashing it in early.

thos147

As far as I am aware I can cash in and not lose any of the original funds the 10k has made £677 since its onset which I thought wasn't very good.

I have never invested any money and I would like to reinvest later ISA,s sound good but does anyone have any ideas, and thanks to evryone who has replied

regards

jem16

thos147 wrote: »

As far as I am aware I can cash in and not lose any of the original funds

The guarantee is usually on maturity.

You will need to ask for the surrender value if taken early.

oldtoolie

Are the bonds now in your name or still in your father's name? Has his estate been settled? If not, you will have to deal with that before anything else.

As the bonds have less than a year to run, you might as well leave them until you have a plan for what to do with the assets. This isn't a question that can be answered in a forum since you need to do a financial review to figure out what you need -- pay off debts or mortgage, start a pension, or save it. So take your time, go to the library or bookshop and get a book on personal financial planning. Go see an IFA or two -- initial discussion is free and you will get an idea what they could help you with.

Just count yourself lucky you didn't win the EuroMillions Lottery -- imagine having to figure out what to do with that.