Santander Stockmarket linked savings bond.

Cornishkatie

Hi, is it worth re investing money from a matured santander stockmarket linked savings bond, into another one with santander?
Apologies if this had been asked before.

eskbanker

If you've already had one of these products, you should be in a better position than most to assess whether it worked out for you? Much will depend on what your objectives are for the money, which will in turn inform whether there are better ways of achieving them, over whatever timeframe you have in mind....

fwor

In isolation, without further information about your circumstances and objectives, it's impossible to say.

It may be that the money could be better deployed elsewhere - for example by contributing to a pension, but as you don't say anything about your circumstances, it's hard to see how anyone could know, one way or the other.

Terry_Towelling

Cornishkatie wrote: »

Hi, is it worth re investing money from a matured santander stockmarket linked savings bond, into another one with santander?
Apologies if this had been asked before.

Apologies for being a bit personal but how much was in the bond, how long was it invested and how much did it pay on maturity?

sjp999

I can answer one of those - nearly.

4 or 6 years

Cornishkatie

Asking for a family member.

Invested 40,000 for 6 years, return 48,800.
Wants to know if to re invest for another 6.

AnotherJoe

So just about about kept pace with inflation then. Is that what they are after ?

sjp999

If it doesn't work out as well for them next time around, would they be happy with bare minimum return offered if the top end conditions aren't reached?

I read up on this and I'm not sure if I like the chances of coming away with a 50 quid return on 10 grand on something that claims to be a risk category 2 investment.

Of course, they may be perfectly happy with this.

Cornishkatie

Thanks for the replies.
They want a safe investment for the best return!
Wont need access to the money.
Asking me for advice...!!! (Bizarre as I dont have any money)
Is there something obvious/easy for them.
Or do they need to get professional advice.

sjp999

Savings Champion like a challenge - give them a shout and see what they suggest.

For ~£50 grand I doubt anybody providing professional advice will be interested and, if they are, would no doubt want a fair chunk, relatively speaking, for their efforts.

Terry_Towelling

Much depends on the way the market performs over the next 6 years - which nobody can know. Much also depends on whether the bond offers any safeguards against losses and how it protects any gains and just how much of those gains it will return to you.

If the need is for safety and a good return combined, they could just stick the whole £48K into a Paragon 5 year fixed rate account offering 2.66% pa. That will give about £54.5K after only 5 years (if you leave the interest in to compound) with no risk whatsoever. There's probably not a lot in it but, for guarantees, a savings account is probably best for them.

Obviously we don't know what will happen to interest rates over the next 5 years either, so locking away for that length of time might, or might not, be a good thing - but it is safe and pretty certain.