B & B e-Savings Loyalty Bond

brendawilliams

Has anyone any views on the following Bond being offered by Bradford & Bingley only to its e-savings customers.

The Bond's cash element is for 1 year and offers 7.50% for 50% of investment. The equity element offers 70% of the FTSE 100 growth for the other 50% of investment over 5 years. The underlying investment is guaranteed to return 100% of the initial stake.

Thanks

dunstonh

Rubbish.

70% of FTSE 100 growth means they are pocketing all the dividends and keeping 30% of the growth for themselves and not you. Also, its generally considered not to be the best time to be investing in the FTSE100.

You would be better off sticking 50% into a range of shares or stockmarket based funds (range not one) and the other 50% into lower risk investments such as index linked gilts, commerical property funds etc and then have annual rebalancing on the funds. This way you get to keep the returns and not have them creamed off by the building society.

By the way, dont take that as advice because its an opinion posted to discuss. We cannot give advice at this website. If you think that option may be more suitable for you, then you should seek independent advice first before you do anything.