Legal
Good Advice - You Can`t Bank on it
Customers are not getting the quality of advice they should expect when visiting their bank or building society,…
21.01.2013
Beware `No Risk` Bonds
Bank savers need to be wary of products offering them the potential of stock market returns without the risks, says claims expert Michelle Barrett of Credit Claims in Bolton. A recent report by respected consumer magazine Which? has highlighted concerns that some customers could be misled into thinking these products are without any sort of risks at all. Structured Deposits also called Capital Protected Bonds, offer savers the opportunity of enjoying the benefits of stock market returns, safe in the knowledge that their original capital will not go down. The report says that most of the banks and building societies are offering these as an alternative to bank deposit accounts which are paying low interest rates in the current environment. One of the products they looked at would not have paid out the maximum advertised return on any single occasion in the last decade and would have paid out the minimum return in 94% of cases. Disappointingly, the report also found that none of the bonds they looked at produced an average annual return above what could have been achieved in a fixed rate savings account Michelle Barrett says 'The problem with these sorts of bonds is that they rarely achieve the sort of returns they advertise. If you invest £50,000 over 5 years and just get your money back, you`ve still lost, as inflation will mean your money is worth less in real terms than it was five years earlier. If customers are looking for alternatives to Structured Deposits they should consider fixed rate bonds. If some element of risk is acceptable then they should take advice from a reputable Independent Financial Adviser.' Which? is calling on the regulator to ensure these products are only sold by qualified financial advisers and that banks are not paid commission for selling them. 'It makes sense that where there is an exposure to the stock market and long term investments, any advice is only given by those qualified and experienced enough to explain the true risks and the alternatives' commented Michelle Barrett. Credit Claims was Highly Commended in the Bolton and Bury Business Awards in both 2011 and 2012 in the category of Customer Excellence. It works on behalf of clients who have been mis sold investments, mortgages and ppi.
I have over 20 years experience in Retail Banking and Financial Services having worked in a variety of management roles. I started my own business in Oct 2006 as an Independent Mortgage Broker and…
Legal
Banks guilty of mis-selling ninety percent of complex...
Michelle Barrett of Credit Claims, a leading financial claims company, says it comes as no surprise that the high st…
Financial Services
New Rules for Investment Advisers
The way financial advice is given has changed in one of the biggest shake ups to the sector for many…
More Articles
Legal
Banks to face PPI fines
Some of the UK`s biggest banks could face massive fines for delays in settling PPI claims, warns Michelle Barrett,…
Legal
Top Award for Caring Mum and Businesswoman
AWARD FOR CARING MUM AND BUSINESSWOMAN
Credit Claims Ltd Operations Director Michelle Barrett has been awarded a…
Financial Services
Investment mis-selling overshadowed by PPI
Leading financial claims expert Michelle Barrett has highlighted her concerns that the mis-selling of investment…
Would you like to promote an article ?
Post articles and opinions on Manchester Professionals
to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.