Hello, i was wondering if someone could help me. My mother put £10,000 in a guaranteed capital bond 5 years ago and it matures in a couple of months. The return is based on the FTSE-100 and a maximum return is £3,500.

She received a letter the other day notifiying her that the bond was going to mature, so she phoned the bank to see how much it was worth and was told it was still worth £10,000.

My mother and i know very little about these sort of things, so i was wondering if someone could tell me how much the FTSE-100 has increased over 5 years, she is now worried that she won't get anything back on top of the original investment because of this phone call.

Any help would be appreciated.

Thanks

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Can no one help me on this one? I would really appreciate it if someone could help me on this, as it is weighing heavily on my mothers mind. She is very concerned and worried that she has wasted 5 years worth of interest that she could have got in a high interest account.

In the original post i asked if someone could tell me how much the FTSE-100 has increased over 5 years, i should of asked how much it has increased or decreased (if that is infcat the case) since the Auguest of 2001 to August of 2006. I would have corrected that in the original post if i could edit it, which for some reason i cannot despite the fact i can edit my posts in other forums.

Anyway, as i said, if someone could please let me know one way or another i would appreciate it.

This is what the 'Post Sale Information' states:

If the FTSE 100 grew @ 2% per year you would get back £10,300, for 4% it's £11,300 and for 6% it's £12,300.

If there is anyone out there who could calculate this for me and let me know how much i could get back, i would be very very grateful.

I might add that the original investment is guaranteed, so if the FTSE 100 has infact decreased then thankfully the original investment is safe.

Thank you for your attention, and a big thank you to anyone who can help me on this one.

Thanks!

FTSE 100 closed at the end of August 2001 at 5340.

Found this too.

People who invested in equities in 2001, when the FTSE was over 6,000 points, were hit as the markets took a tumble. Among them were investors in the HSBC Performance Plus Isa. They have just discovered that after trusting the bank with their money for five years they have not made a penny in profit.

The plan guaranteed the return of at least their initial investment, but any growth depended on the performance of the FTSE 100. At the start of the plan, the index stood at 5,944 points but by the end of the plan the average for the five years was only 5,228

It's how they define an 'increase' which matters.

Thanks for the reply, i have been looking around myself and saw that the FTSE-100 took at tumble from over 6000 around 2000/2001 (don't know the exact dates).

It doesn't look good, but at least none of the original investemnt is lost, i suppose that's the only consolation.

Well there is still a couple of months before it matures, although i doubt the FTSE-100 will go up much, i hope it is enough to justify 5 years worth of interest that could have been earned in a standard current account (which wouldn't be a huge amount i suspect).

Well thanks for your efforts, i appreciate the response.

The only way you can really get to the answer is to refer to the original terms and conditions that were signed up to.

The timing does sound a bit unfortunate though.