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  • FIRST POST
    • Cornishkatie
    • By Cornishkatie 3rd Jul 18, 3:25 PM
    • 4Posts
    • 0Thanks
    Cornishkatie
    Santander Stockmarket linked savings bond.
    • #1
    • 3rd Jul 18, 3:25 PM
    Santander Stockmarket linked savings bond. 3rd Jul 18 at 3:25 PM
    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.
Page 1
    • eskbanker
    • By eskbanker 3rd Jul 18, 3:46 PM
    • 8,416 Posts
    • 9,524 Thanks
    eskbanker
    • #2
    • 3rd Jul 18, 3:46 PM
    • #2
    • 3rd Jul 18, 3:46 PM
    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
    • By fwor 3rd Jul 18, 3:46 PM
    • 6,050 Posts
    • 4,105 Thanks
    fwor
    • #3
    • 3rd Jul 18, 3:46 PM
    • #3
    • 3rd Jul 18, 3:46 PM
    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
    • By Terry Towelling 3rd Jul 18, 4:17 PM
    • 704 Posts
    • 563 Thanks
    Terry Towelling
    • #4
    • 3rd Jul 18, 4:17 PM
    • #4
    • 3rd Jul 18, 4:17 PM
    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.
    Originally posted by Cornishkatie

    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
    • By sjp999 3rd Jul 18, 4:28 PM
    • 102 Posts
    • 74 Thanks
    sjp999
    • #5
    • 3rd Jul 18, 4:28 PM
    • #5
    • 3rd Jul 18, 4:28 PM
    I can answer one of those - nearly.

    4 or 6 years
    • Cornishkatie
    • By Cornishkatie 3rd Jul 18, 4:48 PM
    • 4 Posts
    • 0 Thanks
    Cornishkatie
    • #6
    • 3rd Jul 18, 4:48 PM
    • #6
    • 3rd Jul 18, 4:48 PM
    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
    • By AnotherJoe 3rd Jul 18, 4:56 PM
    • 11,460 Posts
    • 13,227 Thanks
    AnotherJoe
    • #7
    • 3rd Jul 18, 4:56 PM
    • #7
    • 3rd Jul 18, 4:56 PM
    So just about about kept pace with inflation then. Is that what they are after ?
    • sjp999
    • By sjp999 3rd Jul 18, 5:14 PM
    • 102 Posts
    • 74 Thanks
    sjp999
    • #8
    • 3rd Jul 18, 5:14 PM
    • #8
    • 3rd Jul 18, 5:14 PM
    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
    • By Cornishkatie 3rd Jul 18, 5:30 PM
    • 4 Posts
    • 0 Thanks
    Cornishkatie
    • #9
    • 3rd Jul 18, 5:30 PM
    • #9
    • 3rd Jul 18, 5:30 PM
    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
    • By sjp999 3rd Jul 18, 5:40 PM
    • 102 Posts
    • 74 Thanks
    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
    • By Terry Towelling 3rd Jul 18, 6:13 PM
    • 704 Posts
    • 563 Thanks
    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.
    • badger09
    • By badger09 4th Jul 18, 1:30 PM
    • 6,378 Posts
    • 5,787 Thanks
    badger09
    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.
    Originally posted by Terry Towelling
    No info given, but tax could reduce the return that 54.5k
    • dunstonh
    • By dunstonh 4th Jul 18, 1:47 PM
    • 95,787 Posts
    • 63,480 Thanks
    dunstonh
    Hi, is it worth re investing money from a matured santander stockmarket linked savings bond, into another one with santander?
    Was that one of their deposit versions or a structured capital at risk product (SCARP)? I didnt think Santander offered either of them anymore after they got into trouble with them some years back. If they are, what are the terms and who is the market counterparty?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Terry Towelling
    • By Terry Towelling 4th Jul 18, 8:53 PM
    • 704 Posts
    • 563 Thanks
    Terry Towelling
    No info given, but tax could reduce the return that 54.5k
    Originally posted by badger09

    Quite right and fair point - all depends on OPs other income as to how much interest income can be had tax-free - and certainly you'd want the interest on a 5-year bond to be paid monthly or annually - not on maturity, as that would certainly be a big hit on interest in a single tax year.

    I suppose because the Santander bond was a capital investment it wouldn't have been liable to income tax but CGT instead (if it gained more than the annual exemption - which it didn't). I did have a brief look to see if there was a 5-year ISA that could take some of it this year and some next but only Charter Savings came close with 2.31%.

    I guess it is a case of doing the sums, working out your attitude towards the uncertainty of the market and then plumping. We still don't know what the Santander Bond terms were to know what might suit best.
    • dunstonh
    • By dunstonh 4th Jul 18, 9:29 PM
    • 95,787 Posts
    • 63,480 Thanks
    dunstonh
    I suppose because the Santander bond was a capital investment it wouldn't have been liable to income tax but CGT instead (if it gained more than the annual exemption - which it didn't). I did have a brief look to see if there was a 5-year ISA that could take some of it this year and some next but only Charter Savings came close with 2.31%.
    Over time, SCARPs have been available unwrapped, within an ISA and via the life assurance wrappers and pensions. So, tax would vary depending on method it was held.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Cornishkatie
    • By Cornishkatie 5th Jul 18, 12:42 PM
    • 4 Posts
    • 0 Thanks
    Cornishkatie
    The maturing bond is " stockmarket linked savings bond" (issue 21) .
    The letter from santander asks if all or part the money would like to be re invested into The santander stockmarket linked savings bond (issue 86). 6 year term.
    ( or transferred into their santander account who they bank with)
    They are a pensioner.
    I wanted to help.
    Its harder than i thought!!!!
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