HSBC 115% FTSE tracker - thoughts?

WilliamT

Already read the piece on HSBC's 8% regular saver account (only available for HSBC current account holders, etc etc.) - however is their tracker any good?

http://www.hsbc.co.uk/1/2/personal/savings-investments/more/ftse-tracker-landing

- 115% on any FTSE rise over 5 years
- if it stays the same or goes down you get original investment back
- final FTSE level averaged over last 12 months of account

William

Walletwatch

I am afraid I don't think so - this one definitely seems like a dog, so far as these products go.

Quote

... If the account is closed before maturity it is unlikely you will receive back the amount originally deposited...

...To get the guarantee and interest you have to hold the account for the full five years. It is not suitable for early encashment and partial withdrawals are not permitted...

Unquote

I would directly put the money into the market or maybe pick up a fund or something.