Summary
BANKS are profiting from the savings crisis by raking in huge margins on investment-linked products that experts claim are being mis-sold.
With conventional savings accounts failing to keep pace with inflation the UK's high street banks and building societies are making up to 12 per cent profit on the sale of structured products. The definition of structured products and the way they work can vary hugely. On the high street the typical plan offers 100 per cent capital protection plus a degree of upside in the value of a specified index (usually the FTSE 100) between an opening and a closing date, with five years the typical term.See the full content of this document
Extract
Know the Risks Before Choosing 'Structured'
Sales of structured products reached a record GBP13.3 billion in 2009 as low interest rates gave banks the opportunity to sell to customers unable to secure real returns from their savings. But there have also been mis-selling accusations and the Financial Services Authority warned earlier this year o...
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