RBS Autopilot Bond

davidqu

Hi

I was wondering if anybody on here has one of these.

I invested nearly 15k into this in 2012, it's low risk and guarantees your original investment back after 5 years, obviously I would be majorly disappointed if it only returned my original investment and hadn't made me any money.

It was my 1st investment and wasn't brave enough to go for one which was medium - high risk though I did at the same time pay into a stocks and shares ISA which is now starting to show some decent return.

Anyway I received my yearly update and I can't make head nor tail of it.

It says

starting level at 1/4/12 - 100.00
1st anniversary 1/4/13 - 101.25

Does that mean its only made 1.25% in the last year, it's very vauge.

For me to make any return my bond will have to be above 100.00 at time of maturity.

If anybody knows about autopilot or anything similar and could advise that would be great

JoeCrystal

A quick look suggests that it is tracking a sector or index or something. What it is tracking? It basically means the value of the investment is at 101.25 so yes, it is now at 1.25% return. But it can fall as well.

I suppose the only good point is that you get £15,000 back after five years. It could be lot worse!

Cheers,
Joe

davidqu

JoeCrystal wrote: »

A quick look suggests that it is tracking a sector or index or something. What it is tracking? It basically means the value of the investment is at 101.25 so yes, it is now at 1.25% return. But it can fall as well.

I suppose the only good point is that you get £15,000 back after five years. It could be lot worse!

Cheers,
Joe

I was very naive, wish I'd shopped about more, 1.25% is pretty crap considering you could get 5% on a normal 5 year bond last year.

JuicyJesus

davidqu wrote: »

I was very naive, wish I'd shopped about more, 1.25% is pretty crap considering you could get 5% on a normal 5 year bond last year.

Such is the risk you take with investments. Especially given the low risk nature of this particular one; lower risk generally means lower reward overall.

davidqu

JuicyJesus wrote: »

Such is the risk you take with investments. Especially given the low risk nature of this particular one; lower risk generally means lower reward overall.

I presumed at the time I invested naively that if banks can offer 5% for their normal 5 year bonds then surely this should pay equal or better.

Lesson learned, kicking myself now though!

opinions4u

davidqu wrote: »

I presumed at the time I invested naively that if banks can offer 5% for their normal 5 year bonds then surely this should pay equal or better.

Lesson learned, kicking myself now though!

You'd be lucky to find more than 2.75% for a five year term deposit today.

davidqu

opinions4u wrote: »

You'd be lucky to find more than 2.75% for a five year term deposit today.

Yeh I know, but at the time I invested there were a few 5 year bonds paying 5%

dunstonh

I invested nearly 15k into this in 2012, it's low risk and guarantees your original investment back after 5 years

These are not normally classed as low risk as 100% loss of capital is possible as there is no FSCS protection.

SCARPs are typically classed as a specialist investment designed for a small part of your overall portfolio. A guide is that you should have no more than 25% in SCARPs with no more than 10% with any one market counterparty.

sheen

My RBS Autopilot Issue 10 went down like a lead ballon. It seems that the other issues are no better.

I have presented a complaint to the FCA.

dunstonh

sheen wrote: »

My RBS Autopilot Issue 10 went down like a lead ballon. It seems that the other issues are no better.

I have presented a complaint to the FCA.

The FCA do not handle consumer complaints. They will just send it to RBS. RBS will then send it to whoever sold it. If it was advised then the adviser will address the complaint. If it was non-advised then your complaint will be rejected.

Investment returns themselves are not something you can complain about. So, you need to be clear on what your complaint is actually about.

N1AK

davidqu wrote: »

Yeh I know, but at the time I invested there were a few 5 year bonds paying 5%

The return is typically based on the performance of an index as Joe said, it isn't down to RBS how well that index performs

Wife's parents invested in something similar that guaranteed them money back but with upside linked to FTSE100 and they ended up making a very decent return. Not for me myself, but I don't think the whole product category is a con of some kind.