Trying to work out how much interest from a bond?! - HotUKDeals
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Trying to work out how much interest from a bond?!

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My nan took out a "50/50 5 year guaranteed equity bond issue 47" with Britannia. She had £6,000 in there. She's asked me to help her work out how much interest she'll gain as I have access to the inte…
midjet666 Avatar
6y, 1m agoPosted 6 years, 1 month ago
My nan took out a "50/50 5 year guaranteed equity bond issue 47" with Britannia. She had £6,000 in there. She's asked me to help her work out how much interest she'll gain as I have access to the internet and she doesn't.

On MSE it said that this account worked like this-
"50/50 bond splits an investment in two - with half going into a one year savings bond paying 7%, and half going into a five year guaranteed capital equity bond which gives a potential return of 50% of the growth of the FTSE subject to averaging."

I've worked out that she'd have £210 for the first year, the 7%. But now I'm having trouble trying to work out the FTSE. I've got the historical prices, but I don't know if they'd go daily/weekly/monthly on working out the average. I've also tried looking at the list of numbers, and I haven't got a clue how to work it all out!

Could someone please help? I'll put the FTSE link in the first post.

Many thanks in advance.
midjet666 Avatar
6y, 1m agoPosted 6 years, 1 month ago
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#1
FTSE

Link with information about the bond

Edited By: midjet666 on Jan 08, 2011 23:28
#2
not answering your question, but would like a spot of advice on bonds. looking at doing one with my bank - is there any risk in bonds? it may be a stupid question but i really dont know :-)
#3
djmalone1985
not answering your question, but would like a spot of advice on bonds. looking at doing one with my bank - is there any risk in bonds? it may be a stupid question but i really dont know :-)


Hiya,
I don't know. My nan deals with all stuff like this but tbh I think she just went with what the man said at the bank! I don't think you lose any money depending on what bond you take out. You'd need to speak to the bank about one where there's no risk.
#4
http://www.which4u.co.uk/bank-accounts/investment-plans?gclid=CIaMsu_iq6YCFcgf4Qodn3E4ZQ

Green ticks on the capital protected box means you won't lose your money that's going in.
banned#5
are those the dates the bond started and finished then?

Did she get £3210 back from the 50% split of £6000 after year 1 or does thsi become dead money for the remainder of the bond term?

Anyway, the return using the dates you gave on £3000 after 5 years should be around £3050 which is dire.
#6
csiman
are those the dates the bond started and finished then?

Did she get £3210 back from the 50% split of £6000 after year 1 or does thsi become dead money for the remainder of the bond term?

Anyway, the return using the dates you gave on £3000 after 5 years should be around £3050 which is dire.


She left the £3000 in there, I don't think she was aware that she could take it out after the first year, or maybe she thought she could get more interest? I'm not sure. £50 is bad :( I think I'll be looking to re-invest the money in a better bank for her, she tends to just listen to what the handsome salesman says and nods and grins at him oO
banned#7
midjet666
csiman
are those the dates the bond started and finished then?

Did she get £3210 back from the 50% split of £6000 after year 1 or does thsi become dead money for the remainder of the bond term?

Anyway, the return using the dates you gave on £3000 after 5 years should be around £3050 which is dire.


She left the £3000 in there, I don't think she was aware that she could take it out after the first year, or maybe she thought she could get more interest? I'm not sure. £50 is bad :( I think I'll be looking to re-invest the money in a better bank for her, she tends to just listen to what the handsome salesman says and nods and grins at him oO

firstsave look the best at the moment at 3.25% for a 1 year bond (register for gross interest if applicable too).
#8
play the stock market!
Put it in lloyds, RBS or GKP and you will see double or more in the next 5 years.

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