Ulster Bank Savings and Investments

[Smart_Saver]

Hi,
Anyone know about Ulster Bank Savings and Investments.

They have this offer now on investing for between 3 & 1/2 or 6 years.
Investment packages start off at 3500 euros.

Word I got back wass that there are no charges at all (which I find hard to believe).

Anyone invested in them or have any info?

Thanks a lot

 

[ClubMan]

Is it a tracker bond (such as [broken link removed]) by any chance? Few if any tracker bonds have no charges. Who are you getting word back from on this matter? You might want to do a bit more research (at least here on AAM if not elsewhere) before diving into something that you don't really understand and that may not suit your specific circumstances. Maybe start with the key posts and then search the site:

Searching Askaboutmoney.com using Google

You should get independent, professional advice (not from a bank's tied agent sales people) if you are not sure what savings/investment options are most appropruiate for your circumstances.

 

[Smart_Saver]

Thats the one allright that I was being quoted. I intend to go back in and investigate it more. It is called the Triumph Investment Bond. I'll post up any information I get back on it.
Cheers for the reply

 

[ClubMan]

Many people (myself included) believe that the cons of tracker bonds generally outweigh the pros. Have a root around for previous discussions of tracker bonds in general.

 

[jennyrusks]

Hi there
I was looking at this the other day when I was in the bank. I'm also looking at [broken link removed]. This is my first time to make an investment so I'm really just dipping my toe in the water.

These are the details of the Ulster Bank offer;

The Triumph Investment Bond takes the guesswork out of investing.
Your investment is exposed to three contrasting investment portfolios-Aggressive, Balanced and Cautious-and you receive returns on whichever performs the best at the end of your chosen term.
You can choose between two terms: 3 Years 6 Months or 5 Years 11 Months
On the 5 Year 11 Month term your capital is invested in two parts:
20% of funds are invested in a fixed rate deposit account earning a fixed rate of 10% gross/AER* for one year.
The remaining 80% of your funds are linked to the performance of the three portfolios.
Let us do the hard work for you, and you can reap the benefits of the most successful strategy at the end of your term.
Please call into your local branch for more details on this product.
*AER is Annual Equivalent Rate and shows what the rate would be if compounded each year
Any return on the Tracker Bond is subject to DIRT + 3% where applicable at the time of maturity.

Triumph Investment Bond Terms

1. The Triumph Investment Bond is available to personal customers only aged between 18 and 85 inclusive. All Body Corporates may also open an account.
2. The minimum investment amount is €3,500
3. The term of the 3 Year 6 Month bond commences on the 16th June 2008 and matures on the 16th December 2011. No withdrawals may be made before the end of the term.
4. The term of the 5 Year 11 Month bond commences on the 16th June 2008 and matures on the 16th May 2014. The One year fixed term deposit account matures on 16th June 2009. No withdrawals may be made before the end of the term.
5. Ulster Bank Ireland Limited undertakes to repay 100% of your deposit at the end of the term irrespective of stock market performance. You will also receive a fixed return of 10% gross/AER on 20% of the capital invested after year 1 of the 5 Year 11 Month investment.
6. Interest will be paid after the deduction of Deposit Interest Retention Tax (DIRT) where applicable. Under current legislation, the effective DIRT rate is 23% (i.e. standard rate of income tax plus 3%). Tax liability and other matters referred to are as applicable under current legislation, which may change, and their applicability will depend on your individual circumstances.
7. If you are not happy with your choice of deposit within 14 days of signing your application, we will help you to switch to another Account of your choice or we will give you back your initial funds deposited in such circumstances. No interest will be earned.

I've read quite a few of the posts about tracker bonds on AAM and been to itsyourmoney.ie , (great site for anyone getting started) - This Ulster Bank offer is appealing to me because I'm guaranteed the capital back, but I understand that with inflation and DIRT, there might not be much of a return.

The Rabodirect is also appealing because there is a low entry cost and you can increase your investment monthly. I think I'm erring more towards Rabo than the UB offer but would appreciate any advice or comments.

thanks

Jennifer