Investing 20k over 5yr term advice

fraz101

My dad has a guaranteed investment bond with MetLife that is due to mature next month, it was an 8 yr term and he invested 20k, it now sits at 24.5k (thoughts on his return over 8yr term?)

He now is looking for somewhere else to invest it as MetLife no longer do guaranteed investments.

He wants to invest for 5yr Max with guarantee of at least his investment back. (He is not a risk taker)

He already has ISA and doesn't want to add it to that.

What is available that has a decent guaranteed return?

Audaxer

No investment can guarantee return of the capital in 5 years as there could easily be an equity crash within the next 5 years. If he is not prepared to invest for the long term - at least 10 years - then he would be better with the best fixed interest savings account rather than an investment.

NewShadow

According to my calculations, £20k to £24k over 8 years is in the region of 2.2% ROI per year compounded.

This page has a number of savings accounts where you can get around the same rate of return for three/four/five years: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

AnotherJoe

fraz101 wrote: »

My dad has a guaranteed investment bond with MetLife that is due to mature next month, it was an 8 yr term and he invested 20k, it now sits at 24.5k (thoughts on his return over 8yr term?)

Depends from what perspective. It's just about kept pace with inflation. So if he's happy with that, then fine. Had it been invested in the global stock market in a really low risk fund say vls20, he'd have £30k. And medium risk, £40k. And I'm not saying he should have bought those, just giving a benchmark.

fraz101 wrote: »

He wants to invest for 5yr Max with guarantee of at least his investment back. (He is not a risk taker)

He is he just doesn't realise it. He's taking a risk that inflation will whittle away his savings. He did well to break even.

fraz101 wrote: »

What is available that has a decent guaranteed return?

I doubt he'd beat inflation this time round.is that counted as a reasonable return ? It all depends on your perspective. Don't be fooled by these "guaranteed 8% return bonds" you'll find innnewspaper adverts and google searches. You could literally lose all your money with those.

xylophone

http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html