Pinnacle Guaranteed Monthly Income Bond
Guaranteed income bond
Choice of one, two, three, four and five years
One year term - 3.92%-4.21%, two-year term - 4.2%-4.3%, three and four year terms - 4.3%-4.35%, five-year term - 4.5%-4.64%
Capital returned in full regardless of performance of underlying investment
Tel: 0208 207 9685
Pinnacle has added the choice of monthly income to its range of guaranteed income bond options.
Baronworth managing director Colin Jackson says: “We have been on at Pinnacle for years to introduce a monthly income bond. We are delighted that it has taken on board and acted upon our suggestion. Over the last couple of years we have seen our clients gradually lose interest in anything that is equity based. We have now reached the stage where they are positively risk averse. For this reason,
guaranteed income and growth bonds are proving to be extremely popular.”
Jackson points out that Pinnacle is a major player in the guaranteed income bond market and believes the three-year guaranteed monthly income bond offers exceptionally good rates. He says: “The features of the bond are what I would expect to see from any of Pinnacle's competitors. The literature is well written and easy to understand - but I would expect nothing else for this type of product.”
According to Jackson this product could be useful for IFAs as an alternative to deposit accounts for clients who are looking for a fixed term and fixed rate of return.
Looking at the product's weaknesses Jackson says: “I am not too keen on the possible age restriction. Also, the literature is totally unsuitable for a mailshot. It is too big and heavy which has the effect of increasing the mailing costs.”
In conclusion he points out that as guaranteed income bonds are rate driven, whoever offers the best rates will compete with Pinnacle.
Suitability to market: Good
Interest rates: Good