For example, you could have invested with the Tunbridge Wells Equitable, which has a tax free saving scheme called a Baby Bond, which guarantees a minimum amount when it matures regardless of the economy or interest rates. Initially what I read in the literature made me dubious. The example that they give is monthly savings of 10 for 20 years giving a guaranteed minimum amount of 2,075. That s not much of a return bearing in mind that you would have paid in 2,400 over that period. However Ms. Turner explained that this guaranteed amount is a set sum assured, to which yearly bonuses are added in order to build up the fund value.
All speculative figures have no guarantees, the society is at pains to point out.
However their track record is quite good. They have appeared 25 times out of 40 in the number of top ten achievers in the last decade. The premiums range from 10 to a maximum of 25 per month and are invested in a wide spread of company shares and government securities. The emphasis is on fund management that aims to smooth out the ups and downs of the stock market over the medium to long term. All in all the safest bet is the banks and building societies savings account.