The "Guaranteed Equity Bond" (issue 9) appears to be pretty good. Your money back ,after 5 years, in a worst case scenario, else 105% of the increase in the FTSE 100. This compares pretty well compared to similar offers from, say, Nationwide, which only gives you back 70% of the increase. Is the NS&I one too good to be true, or are there even better ones out there? I can't find any articles on the net comparing these sorts of offers - are they unpopular, or maybe I need to practice my search skills?!
NS&I GEB Issue 9
Sep 16, 2004
5 Replies
They're consistently the best deal there is imo. Some previous comment here . The certainly beat the hell out of the average life assurers offering.
I suspect they're not talked about in the media as much as other products because the IFAs don't market them because they don't get commission, which is why they're better value for money.
Daytona
In message , Daytona writes
But unlike life assurance bonds, with their special tax treatment, the NS 'Bonds' pay five years accumulated gross interest in one go into an income taxable environment and could easily knock lower tax payers into higher bands and pensioners into losing/reducing their age allowances. Also Life Bonds are disregarded as assets when assessing care home fee assistance
Don't you just pay the extra tax on the amount in the higher band though? If you were £4000 below a limit and you were pushed £1000 above it, wouldn't you pay the higher rate of tax on just that £1000?
I'm not that old! Cheeky young whippersnapper!
In message , Fred Bloggs writes
Yes, but if the interest was paid annually then you would avoid that bit of extra tax.
Young? You flatter me ! :-)
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