YBS 9.5% 1 year Savings Bond

FBF2007

I have an appointment next with with a L&G financial consultant to see about investing in the YBS 9.5% savings bond. Normally this would be a no-brainer but the catch is that I must also invest 50% of the total investment in a long-term L&G investment bond and I can find no details on this product.

I will be investing 10k in total but I am not sure whether I would just be better off investing the full amount in a lower rate savings bond. The L&G investment bond must be a bit of a dog for them to have to package it with a 9.5% savings bond, and insist on a meet with an FC to cross-sell.

Note that if I go ahead it will be in my Wifes name as she has no income and therefore we should receive thee full 9.5% on the savings bond. We haven't used our ISA allowances at all this financial year.

So is the product worth exploring or a bit of dog that I should avoid? Opinions please and any alternative savings bonds I should look at?

Many thanks.

FBF

oldfella

avoid - its high cost and a money spinner for everyone apart from you

steve_IOW

I've just had a look at the YBS 1year savings Bond, IMO I would put my 10K in ICICI 1year Term deposit paying 6.85%, as with this YBS bond you will be putting half your money into Equity type investments, with the associated "Ups and downs" .
Hope this Helps, Regards Steve

free4440273

If it's a GEB type investment, then it's probably best to avoid.

baby_boomer

FBF2007 wrote: »

I have an appointment next with with a L&G financial consultant to see about investing in the YBS 9.5% savings bond. Normally this would be a no-brainer

Yes, a complete no brainer.

Never go for the 1 year short term option which ties you into the 5 year policy which can claw back your gains with charges and exit fees.

However this YBS deal looks to be a cut above the mad offer from the Newcastle BS.

1Year 9% Savings.
5Year+ Halifax House Price index Bond :eek:

These societies know their customers well and this means their actions are very naughty. High short term interest rates often attract the very people who don't actually want one of these long term bonds. But the commission on the bonds helps to boost profits and director bonuses.

Coventry BS's offer is desperate.

8.75% is the headline rate. But this applies only to a regular saver account and the interest rate falls in years 2 & 3 (when you've actually got a decent amount in the account :rolleyes: ). And the matching funds have to go into a Norwich Union product which is a 5 year + one as usual.

FBF2007

Thanks for the responses. Think I'll cancel the appointment on Monday.

FBF