What does the congregation think of this deal?

[DimPrawn]

http://www.nsandi.com/products/geb/index.jsp?ccd=NEFGAA

The NS&I Guaranteed Equity Bond (GEB) Issue 19 offers you a potential return linked to the FTSE 100 index – up to a maximum of 50% (8.45% AER*) at the end of the 5-year term – while keeping your capital 100% secure.


So you get 1/2 the FTSE gains over 5 years, and if the FTSE is lower in 5 yrs you get your money back.

No brainer or dumbass investment?

[DiscoStu]

http://www.nsandi.com/products/geb/index.jsp?ccd=NEFGAA

The NS&I Guaranteed Equity Bond (GEB) Issue 19 offers you a potential return linked to the FTSE 100 index – up to a maximum of 50% (8.45% AER*) at the end of the 5-year term – while keeping your capital 100% secure.


So you get 1/2 the FTSE gains over 5 years, and if the FTSE is lower in 5 yrs you get your money back.

No brainer or dumbass investment?

Depends if you want to tie up your cash for 5 years.

[DimPrawn]

And if you did, is it a good deal or a govt rip-off?

[DiscoStu]

And if you did, is it a good deal or a govt rip-off?

Depends whether all the money printing causes hyper-inflation and 20% interest rates in 3 years, in which case you might not end up with very much in real terms.

[Jeebo72]

Buy Llyods and RBS, you'll make *7.5 your investment in 3 years minimum. PS it's up to you if you follow this advice!

[thunderlizard]

I think you misunderstand the max 50% - it's not max 50% of FTSE growth, it's max 50% of the initial capital.

Received wisdom is they are a rip-off because you don't get the dividends that a straight FTSE investment would give you, and there's no inflation-proofing. I've used things like that in the past as an alternative to cash. They're just safer than owning the shares, with less potential to gain.

[BrilloPad]

Father-out-law did one of those 5 years ago. He thought it was a great idea until last year.

[EternalOptimist]

http://www.nsandi.com/products/geb/index.jsp?ccd=NEFGAA

The NS&I Guaranteed Equity Bond (GEB) Issue 19 offers you a potential return linked to the FTSE 100 index – up to a maximum of 50% (8.45% AER*) at the end of the 5-year term – while keeping your capital 100% secure.


So you get 1/2 the FTSE gains over 5 years, and if the FTSE is lower in 5 yrs you get your money back.

No brainer or dumbass investment?

I'm not sure what the answer is, but it brought to mind a game I used to play when I was on the dolio.
We used to sit in the pub with yesterdays paper, and select horses based on their form, then see how much we would have left with a ten pound starting stake. It was very entertaining, but also let you know what a bad idea gambling is, and how sh1t we were at picking form.

Maybe you could do the same, where would you be if you had got one of these last year, year before, year before that etc

[ctdctd]

Search for GEB here

And if you still want one, have a look here for initial discounts on some.

HTH

[BlasterBates]

If the bank goes bankrupt you get nothing. Basically all they do is invest your capital in a standard bank account earning iinterest for 5 years take the interest that you will earn over 5 years and speculate it on the markets.

Why don't you do that your self? Subtract the interest from your capital that you expect to earn over 5 years and bet it wildly on the markets. After 5 years the the capital will be back to where it was at the beginning, plus your winnings by betting on Futures.

Thta would be more fun and you wouldn't have to pay commission.

For example you have 10 grand. Put 9 grand in a building soc for 5 years, and stick 1 grand in the Furures market. Now if you screw up you lose your 1 grand, but in 5 years you'll have your 10 grand back. However you can make stionking loads of dosh when you speculate. That's what the bank does and then tehy give you 50% of their winnings.