Post Office Financial Services says it is too early to determine the success of its Guaranteed Equity Bond, which has been introduced as part of a financial services joint venture with Bank of Ireland.
A spokesman called delivering the product to its 16,000 Post Office branches ‘a massive logistical exercise’.He said the majority of branches now have GEB leaflets, and all staff have been trained to offer both the National Savings and Post Office GEBs to interested customers, without offering advice on either product.
The spokesman said early sales figures have been ‘encouraging’. He added, however, that he expects the bulk of sales to come in the last four weeks, and said the firm will decide whether or what to offer as future structured products after this offer has closed and sales have been evaluated.
“We are committed to offering a broad range of financial services products, and savings products are a part of that,” he said.
Meanwhile, National Savings & Investments is still in talks with several potential retail distribution partners. The company said it had been broadening its distribution channels to telephone and the internet for the past few years, and that seeking new physical locations for its direct offer products is part of that drive. The vast majority of Guaranteed Equity Bond Sales are effected through direct sales.
The Post Office GEB pays 110% of the FTSE over five years and 75% over three years. Minimum investment is £500. Product closes 30 November.
