Guaranteed equity bonds are no guarantee

When stockmarkets start to look rocky, banks waste no time in touting schemes that offer protection from market falls - such as guaranteed equity bonds. But you should be wary, even if their terms are tempting.

When the stockmarket starts to look rocky, banks waste no time touting schemes that offer protection from market falls. So it's no surprise that the finance pages are full of adverts for guaranteed equity bonds (GEBs).

GEBs are all pretty similar. They run for a fixed term and are linked to the performance of equities, but they guarantee to return your capital in full if the market drops, says Paul Farrow in The Sunday Telegraph.

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Naomi is a money expert and personal finance journalist with more than 20 years of experience in the industry. In her time she has written for The Times, Herald Scotland and MoneyWeek, and Naomi is currently at MoneySuperMarket as a money expert. Naomi shared her expertise on personal finance topics from travel insurance to the best savings accounts on MoneyWeek.