A question about : Your Thoughts:- Re: L&G Capital Guaranteed Multi-Index Equity Bond 12
Hi,
Back at the end of 2009 via Nationwide Building Society; I invested Ј12,000 (all of my then ISA) in a L&G Capital Guaranteed Multi-Index Equity Bond 12
https://www.legalandgeneral.com/libra...12_Deposit.pdf
All I've heard are horror storys about this type of product and I was just hoping to get back all my money invested (and anything extra will be a bonus).
Why I took this out I'm not sure, I know they where offering a fixed 1yr account with about 5% (may of been 4% or even 6%) on the same amount invested, so I also took that account.
At the time I had some health issues and early 2010 I had to finish work (via a ill health pension), so looking back it wasn't a great period of time for me and I guess I wasn't thinking straight or read all the small print like I normally do.
I was kind of under the impression that my investment was still within an ISA umbrella, it followed the FT100 and I'd get between 12%-50% of my original Ј12k (tax free) depending if the FT100 increased.
However looking at it now with a clear head, it's 3 indexes and it's the average of this last years indexes rates compared to the rates of them as at 16/12/09.
So how far wrong am I on my thinking and how bad of an investment has this been....? Am I at least right that I'll get my Ј12k back....
Best answers:
- You will get a minimum of Ј13,440 and a maximum of Ј18,000 depending on the performance of the stock market indices. Since the S&P500 alone has more than doubled since 2009 (average growth of the three indices is ~70%), it is likely you will get the maximum return of 50% gross (7% AER).
Edit: Those returns are before tax - assuming this was taken out in an ISA, but there actually isn't any mention of it being possible to hold this in an ISA, so you may have income tax to pay on up to Ј6,000 of interest when it is paid.
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