Is there such a thing as guaranteed S&S NISA?

Wannabedebtfree

I know this is a silly question, but is there a S&S NISA that guarantees that the money you put in would be protected so that you wouldn't come out with less than you put in.

I've currently got a cash ISA but the rates are pretty shocking....

Thanks in advance for any advice.

jimjames

There are but I wouldn't want to touch one.

If you put money into a FTSE tracker in 2007 and it haddropped 50% over the next 2 years, you would still be in profit now and not have lost money.

If you pay for a guarantee you will get lower investment returns. There was an article about making your own guaranteed investment. I can't remember the link but I'm sure someone else will know where it was.

Your_Hero

There are many types of protected/guaranteed type of ISAs.

You can find structured deposit cash ISAs linked to the FTSE which offer guarantees on capital and you risk the interest only. Alternatively, you can look at funds that provide protection as opposed to guarantee. And then there are structured investment plans which are ISA'ble but are not covered by FSCS.

Vortigern

jimjames wrote: »

There was an article about making your own guaranteed investment. I can't remember the link but I'm sure someone else will know where it was.

I think you mean this one:

http://monevator.com/guaranteed-equity-bond/

dunstonh

Deposit based Structured products tend to be dire when it comes to the terms. A very small market exists for them. Typically a few banks selling them to low knowledge consumers who wouldnt know good from bad.

SCARPS (the name for the often incorrectly named guaranteed equity bond - as it is not guaranteed) have other issues as well. Such as the possibility of 100% loss of capital and that can range from very good in a small number of cases at the right time of the economic cycle to being really poor most of the time.

Guarantees cost money. Typically, guaranteed products result in lower returns with very little upside and mean that it makes taking them out pointless.

Wannabedebtfree

Thank you everyone.

I think I'm going to steer clear of them and stick with the cash ISA, as knowing my luck I'd end up with the worst one going and have nothing...

Thanks once again.

robatwork

Not really.

Investment "experts" don't tend to put their money where their mouth is.

If they all knew a gilt-edged brilliant guaranteed investment, they'd be investing in it and not telling everyone else....

IronWolf

Structured products are not 100% safe, they rely on the solvency of the guarantor. They have as much risk of loss as a corporate bond. And at least with a portfolio of bonds your risk is spread.

The only risk less investment is gilts but returns are dire.