SAVINGS
WHAT ARE GUARANTEED
PRODUCTS AND WHY
SHOULD I HAVE ONE?
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et
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New
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ia
but its legacy In particular you can now invest in
sophisticated.
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tio
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n about the c
ofyoursavings.
ing part br
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a
s
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enciesandcangaininterestfrom
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sav
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of Scotland International, for
accounts.
ings Gu
ample, offers a US Dollar
b
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teed Savings Bond
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r
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ie
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ed; they w
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ant on half of
fer
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s inter
fun
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greater return
s to invest for after
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one year and a
ds,
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n on
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per
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tage
at50%
the S&P 50
increase in
of
share
s might be lost if the
value.
s they invest in drop in Bond’sfiveyear
0 In
ter
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isimpr
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If
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r
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s B
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ond
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oving
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ar
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this
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and there is a after five
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se of competing half based
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on
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r wealthy, In this
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of
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In
to
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the
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customer
rateaccoun
. It also
tpasses
means
on
that
even
the
greatersecurity
begun
respons
to
e to this dilemma a number of banks have gain access to some of their funds
customer can
the capital
introduce a series of new savings vehicles, waituntilthefullinvestmentmatur
without
es.
having to
potenti
guaranteed product. These products offer
all the
ally better returns than savings accounts and T
risks associ
excitement of equity investment, without the gu
h
a
e
ra
m
nt
i
e
n
e
imum deposit for this type of capital
market.
ated with directly investing in the stock £10,000 for
d product is usually between £5,000 -
€20,000 for
sterling accounts and up to US$20,000 or
A
medium
either
capital guaranteed product will take the form of good
term
US
investment
dollar and
and
eur
so
o
you
accounts
could
. This
receiv
is
e
a
a
invest
can then
retur
spen
nin
d
a
or
relativel
r
yshorttimeframewhichyou
major
men
a bond
t will
or
be
savings
linked
account.
to the
In
performance
both cases your
of a maturity.
e-invest in another product upon
usually
stock
between
market
three
index
tofive
over
years.
an agreed period,
The
Inve
after
performanceofstockmarketsisimprovingagain
percen
stors
tage
ar
of
e
the
usu
gr
all
owth
y offer
ofthe
ed
ind
a r
ex
eturn which is a reassess
a lull.
how
As
you
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can
esult,
maximise
now is def
your
initely the time to
this per
A capital guaranteed product will pr
savingsincome.
ed
iod.
int
However
o equitie
,
s
your
asawholeover
invest . Tha
money
t all
is never directly an exciting ring side seat watching the
ovide you with
guarantee that whether the sto
o
c
w
k
s
m
t
a
h
r
e
ke
b
t
an
in
k
de
to
x
perform, with the peace of mind that your
stock market
willremaincompletelysecure
deposit
n
20/20 twenty seven
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