Capital Protected Structured Deposit Plans

ChesterDog

Yes, it was capital protected. I wouldn't touch it otherwise.

About putting too much in - I meant not too many of your eggs in that one basket. You should be protected up to £85k, but unless you are well saved/invested elsewhere already, it's a long tie-up and you might be able to do better elsewhere and/or benefit from some diversification.

jimjames

rebecca1 wrote: »

JimJames - " You may be better off making your own plan with money on deposit balanced against an index tracker "
Are these Capital protected? Are they easy to set up?

That link was really useful and explained fairly clearly but in essence it would be the equivalent of holding:

Cash £4000
Index tracker £1000

Instead of a capital protected investment of £5k. The £4k cash gives you the protection and the £1k gives you exposure to the stock market.

Best of both worlds that you don't pay through the nose for the protection and get dividends too. The likelihood of the index tracker dropping by more than 50% is very small, I'd say even a 33% drop is unlikely so effectively your capital is protected to £4666 with more scope for growth than the bond.

Very easy to setup - just buy £1000 of HSBC FTSE100 index tracker fund inside an ISA and the remaining £4000 keep in the best savings account you can find.

Check the link for more details of the specifics.