investment

cena

was in the bank yesterday due too some money that had matured.Anyways they had two deals for me too invest the money again. One was invest 10,000 for 4yrs at 20%.

What I want too know is the 20% over the 4 yrs or each year. It sounds like a good deal too make. I'v already Got 5yr investment which now has 4yrs left.

Should I do it. Even do the family is struggling with money. But they have all told me too go ahead with it.

soddy1979

What is the name of the product? I doubt it is 20% per year to be honest, and if that is in fact the target return, it is too risky for you if your family are struggling with money. Post the name of the product the bank is trying to sell you and I'm sure some forum members will explain the details to you.

donegal11

I would invest it in something shorter such as in EBS 18month deposit account @6.75.With this account you can withdraw half the cash(one withdrawal) without penalty, and if you don't need the money after18month the account will roll over to another 18month account at the prevailing rate. Consider that in 2 to 3 years we could have far higher interest rates then now and your money will be already committed to a lower rate.

cena

Its Bank of ireland. The guy said its one of there deals there doing at the moment. He never said it was a product. I 'v till next thursday too make up my mind.

My family would be my mother etc. I'v no mortage or kids anything like that.

cena

anyone have anything too say what I should do.

Arthurdaly

Its most definitely not 20% per annum and more than likey a fixed term deposit and 20% over that time is not the worst.

Were you given any literature? Any link to a website on the product? Is this capital protected and the return guaranteed? What exactly will you be investing in?

If you cannot answer these questions you need to ask them.

cena

Arthurdaly wrote: »

Its most definitely not 20% per annum and more than likey a fixed term deposit and 20% over that time is not the worst.

Were you given any literature? Any link to a website on the product? Is this capital protected and the return guaranteed? What exactly will you be investing in?

If you cannot answer these questions you need to ask them.

I was not given any leaflets etc. Was not told its a product. I may give the guy a ring on monday Too get more info. do you think the bank would have leaflets on the deal they have.

The five year one I have if the return is not good after 3yrs the bank gives the money back.

Arthurdaly

Regularly see posts on this site from disgruntled punters claiming they were conned by some bank rep, dont be one of those.

You clearly are not certain what you are investing in, demand the information otherwise walk away. They most certainly have the standard terms and conditions etc.

There is nobody here that can advise if you yourself are not sure what you are getting into.

cena

I'll give him an email and ask a few mire questions. He doesn't work that the local bank every day only on a Thursday.

irishh_bob

cena wrote: »

I'll give him an email and ask a few mire questions. He doesn't work that the local bank every day only on a Thursday.

a percentage of your investment will be guarenteed to give a 20% return , the rest will ( i guarenteee you ) loose a sizeable amount as it will get swallowed up by bank charges and fees , you will end up no better than if you stuck it in a savings account , those funds are a con

cena

irishh_bob wrote: »

a percentage of your investment will be guarenteed to give a 20% return , the rest will ( i guarenteee you ) loose a sizeable amount as it will get swallowed up by bank charges and fees , you will end up no better than if you stuck it in a savings account , those funds are a con

The one yr one I had I only made 170 0r so after tax. I'm guarenteed all my money back after the 4yrs. Four years is a long time.

I think i'll just open a savings account. I seems safer.

irishh_bob

cena wrote: »

The one yr one I had I only made 170 0r so after tax. I'm guarenteed all my money back after the 4yrs. Four years is a long time.

I think i'll just open a savings account. I seems safer.

four out of five bank investment funds dont make any money , if you want to invest , go with direct shars , might be worth doing an investment course

a few companys who i think are a safe bet include

glanbia
kerry
paddy power

cena

irishh_bob wrote: »

four out of five bank investment funds dont make any money , if you want to invest , go with direct shars , might be worth doing an investment course

a few companys who i think are a safe bet include

glanbia
kerry
paddy power

Where would I do an investment course. How hard are they.

Any suggestions what I could do with the money.

cena

so I emailed the guy today and this is what he had too say.
This is the email i sent him.

need more info on this investment you want me too take. The 20% one over 4yrs.

What I want too know is this a product you want me too invest in. Is it capital protected and the return guaranteed. Well I get my 10,000 back after the 4yrs. How much am I guaranteed too make before tax or even after tax. Well the bank take any fee from the investment

I'm not feeling good about doing any other investment. I'm thinking of just opening an savings account or I may go with EBS 18month deposit account @6.75.

HIS REPLY

The details of the 20% fund are as follows. The term of the investment is 4years 11 months. All the Capital is fully protected at maturity and the return of 20% is also guaranteed. There is no access to any of the money during the term of 4y 11m. €20,000 invested will give you a Gross return of €4,000 at maturity and €2,800 after exit tax currently 30%.



There are no fees for the investment.



This investment is one of the most popular at present and competes very favourably with anything in the marketplace at present. The big advantage is the longterm rate particularly as ECB rates are expected to reduce in the near future.

draiochtanois

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cena

draiochtanois wrote: »

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I have none of the above. I'm 26. Still young. I had asked an account that I used once for some stuff and told me I was too young too invest the money as I may want too buy a house etc.

draiochtanois

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cena

draiochtanois wrote: »

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I'll look at them later. I have been thinking of investing some money into a hockey team latey. Have a feeling its not a great idea.

cena

draiochtanois wrote: »

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I'll look at them later. I have been thinking of investing some money into a hockey team lately. Have a feeling its not a great idea.

irishh_bob

cena wrote: »

I'll look at them later. I have been thinking of investing some money into a hockey team lately. Have a feeling its not a great idea.

your putting that one on ice then ?

cena

irishh_bob wrote: »

your putting that one on ice then ?

I'd be guessing there's a pun it that. I don't I'm going too go ahead with the bank investment. It doesn't feel right. Would love too own a part of the ny rangers.

HobbyMan

Your bank investment sounds like a life assurance tracker bond ( based on the guaranteed return and 30% exit tax ). If it's a guaranteed product then it is a product for low risk investors.

A previous poster said thati nterest rates may well be higher in a few years time. This may be true or it may not - it is something you have to decide for yourself.

cena

Sorry for the delay. I haven't done anything with the money yet. Still not sure what to do.

Regina2009

In the same boat as Cena with a similar amount to invest.
Want to maximise return obviously, and want to consider all my options, even the riskiest ones:
Deposit accounts, shares, investment funds etc.

draiochtanois

This post has been deleted.

krd

cena wrote: »

HIS REPLY

The details of the 20% fund are as follows. The term of the investment is 4years 11 months. All the Capital is fully protected at maturity and the return of 20% is also guaranteed. There is no access to any of the money during the term of 4y 11m. €20,000 invested will give you a Gross return of €4,000 at maturity and €2,800 after exit tax currently 30%.

Right, what it is, is actual, 5 % per annum simple interest (not compound)
Not 20% per annum. It's completely deceptive to claim 20% as everyone assumes that to mean 20% per annum compound interest.

If the exit tax is 30% - €1,200 - your left with €2,800. Which works out as €700 per year. Which is a simple interest rate of 3.5 % per annum.

Nowhere near your 20%

No investment is going to give you a 20% return unless it's very high risk. Or a Ponzi scheme.

I've been hearing so much junk being advertise on the radio. Banks offering to "pay the interest" up front.......Of course if you take your money out you don't get the interest, so in reality your not getting it up front. Only an idiot would swallow it.

The banks are really scummy.

Isoaxe

The interest rate after tax is just under 2.66% per year, since the gross return after 5 years is 14%.

€2,800/€20,000=0.14

1.0266^5=1.1402

That's a crappy deal, barely keeps pace with inflation.

There are much higher yielding savings accounts available that don't lock your money away for such a long time.