Ulster Bank - Premier Brands Split Return Bond ?

Hi there, I have had 20K on 18month deposit with Ulster Bank which has come to the end of its term. I was going to withdraw the funds and save them in a State Savings 5 1/2 year certificate. An adviser at Ulster bank has suggested the above bond for me to save in. I am not so sure, I don't like that only 25% of the funds will earn interest at 1.45% and that the interest on the remaining 75% will be capped at 23%. Having done a search on askaboutmoney I found old posts which advised to keep away from this product. Is this still the same case? Would like your thoughts. Thank you.

I am unaware of this particular fund but have a similar position in another of these funds which is due to mature next week. In my own case what I put in I get the amount back, nothing extra.

I have formed a view of all these wonderful products is that Banks do not do any of these investment products for nothing. Furthermore I don't believe they will lose any money in any of these either. Caveat emptor springs to mind..

My own view fr what its worth is to let the Banks try and do what they are good at -- this being lending money. How many times have we all read about instances where persons have been mis sold financial products. Scour the market and see what else is on offer. Otherwise, your money is not going to burn a hole in your pocket. Interest rates look like going south next week. Why on earth would any bank want to give their customers positive interest when the market is determining negative rates.

My bank is trying to sell me a one of these split products. 25% on deposit for two years guaranteed 7.5% interest gross. 75% invested in a type of tracker bond for 5 years. Investment guaranteed. Maximum return 20%.

Any advice?

Frank, I don't know the product so am unable to offer an opinion. However before you make any investment decision, make sure you understand the product and that you have everything in writing.

Better Ssafe NOW rather than Sorry LATER

mercman said:

Frank, I don't know the product so am unable to offer an opinion. However before you make any investment decision, make sure you understand the product and that you have everything in writing.

Better Ssafe NOW rather than Sorry LATER

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Thank you mercman.