ING-New Account-Guaranteed Investment Account - 65% of any FTSE 100 growth over 3yr

dunstonh

this guaranteed investment isn't so bad.

Its awful. Well, not for ING it isnt. Its a great big cash cow for them.

You only get 65% of the growth. So, in effect that is 35% of the gain in charges. Plus you dont get any of the dividends which is another 3% a year in charges. There is averaging so you can lose out there. And finally, you are tracking the FTSE100 which is about the worst index in the western world since 1997. It has been substandard in general performance for about 18 years now. Even most bog standard managed funds have beaten it.

Ian_W

There doesn't appear to be any averaging d/h.

How we calculate your total balance after 3 years
We will calculate the difference between the opening and closing value of the FTSE 100 over the term of your account, and if the value has grown, you'll earn 65% of that growth.

• Your opening value = the closing price of the FTSE 100 Index in relation to when your account was funded.
• Your closing value = the closing price of the FTSE 100 Index on the last working day prior to your account closing.

That said, it's still absolute rubbish for all the reasons stated above and the early get out clause is a joke. You get just 10% of any increase if you use one of the "get out of jail" points - so if you leave early after a year and it's gone up 20% [unlikely IMO but possible] you'll get just 2%! You'd need a 60%pa increase to get anything like a decent [ie: not ING!] instant access account would pay.

If you want the certainty of getting your money back and are prepared tie-in for 3yrs there are a good number of accounts from other banks - NOT ING - where you have a guaranteed rate that is likely to see much better returns than this produces. If you're prepared to take some investment risk then use your ISA allowance as the returns, unlike this, will be tax free.

oldfella

You get just 10% of any increase if you use one of the "get out of jail" points - so if you leave early after a year and it's gone up 20% [unlikely IMO but possible] you'll get just 2%!

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no its worse than that - you get 10% of any increase DUE, so if it goes up 20% you get 65% of 2%

JDinho

There are some good structured products available from the likes of Barclays and Merrill Lynch, not your high street bank. Once you understand the structure you can see why the banks sell them as they widen their margins.

Ian_W

oldfella wrote: »

no its worse than that - you get 10% of any increase DUE, so if it goes up 20% you get 65% of 2%

But isn't it reassuring that there are NO HIDDEN CHARGES OR CATCHES!!!

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

purch

There are some good structured products available

Yes they are all structured to make a lot of money for the issuing institution........:mad:

Unfortunately the fact that these products are still available show that lots and lots of people are still being conned into buying them....

JDinho

purch wrote: »

Yes they are all structured to make a lot of money for the issuing institution........:mad:

Unfortunately the fact that these products are still available show that lots and lots of people are still being conned into buying them....

I've found a new 3yr issue that offers 100% capital protection and 80% upside participation in FTSE100. For some investors tracking the index with their capital guaranteed at a cost of 20% of any potential upside over three years will appeal.

Out of curiosity do you know how these products are structured?

dunstonh

I've found a new 3yr issue that offers 100% capital protection and 80% upside participation in FTSE100. For some investors tracking the index with their capital guaranteed at a cost of 20% of any potential upside over three years will appeal.

Very expensive cost for that guarantee though. A DIY GEB could have been the better option with 20%-50% going into cash based with the 50-80% going into equity based. The equity base could be built with a range of funds across the sectors or focused on good yielding funds and not putting all your money onto the FTSE100 which is a quite poor index to track. Especially when you arent getting dividends and only 80% participation.

joesan

alot of structured products say they offer 100% guarentee bt alot have a smallprint...saying only if the index dont drop below 50% etc... bt this product is a true 100% guarenteed..... and also alot of products have no get out clause so access to your money is impossible.

Not saying this is a great product but for some people maybe older people its worth a think about.

If you go by the previous 2 years as stated on their site average of 14% rise in ftse. 65% of that is jus 9% interest. I rather get a guarenteed 6.**%interest from a good bank personally.

munk

nrsql wrote: »

Sounds worse than most of this type - what's the guarantee?

How about the Scottish Widows Guaranteed Investment Bond - 6.6% initial charge(!) with only 10% guaranteed at the end of 5 years up to a maximum of only 35% (ftse gains calculated every 6 months over the term, total of 10 periods with the rise/fall limited to +/-3.5%). Is this legal? :eek: