Saffron BS SUPER BOND minimum investment £500 paying 7.00%

skoolmaster

SUPER BOND launched w.e.f. 20.6.08: a 1 year variable rate bond with a minimum investment of £500 paying 7.00% on maturity. Rate guaranteed to pay 2.00% above Base Rate. No further additions. Earlier access on closure only on 180 day loss of interest. Maximum investment £45K. Available to those who open and invest a minimum of £3600 in a 3 year fixed term Credit Suisse Guaranteed Capital Plus Investment account which must be equal to or greater than the Super Bond investment.
24 Jun 2008

dunstonh

What are the terms of the GEB that goes with it. After all, if its anything like the Abbey one you are using a rubbish product to subsidise a good one and you have to compare the two things together to see what you are gaining or losing.

jamesd

Skoolmaster, the GEB is FTSE 100 over 3 years, 11.5% minimum growth, 30% maximum growth. So minimum 3.7% with annual compounding, maximum 9.14%. Taxable outside an ISA.

Which means that it's rubbish compared to something like the BlackRock UK Absolute Alpha fund, Cru Investment Portfolio, several bond funds or a mixture of these. So: avoid, instead consider a mixture of say:

30% BlackRock UK Absolute Alpha
20% Cru Investment Portfolio
20% Invesco Perpetual Monthly Income Plus
20% Invesco Perpetual Income
10% Neptune Global Equity

That mitxure doesn't guarantee the capital but it's unlikely that it'll fail to do that and it's likely to produce more than the GEB produces whether the markets go down or up. It's not restricted to the UK but if that's desired the Neptune Global Equity fund could be replaced by more of Invesco Perpetual Income.