AMP CAPITAL NOTES! ?! ?! ?!

LCluelessness11 on 29/10/2015 - 16:36
Last edited 29/10/2015 - 16:37

Okay so AMP recently announced that they are offering capital notes.

SHOULD I INVEST IN THEM? I don't have shares or anything so why capital notes? I don't know. So should I?

It is a minimum of $5000. Currently, this $5000 is sitting in a savings account getting 3.5% interest. I think AMP capital notes interest was at 5-5.2% at the top of my head, can't remember exact figure.

Is it worth the extra risk for an extra 1.5%? To be honest it doesn't even make much of a difference….

Now I'm rambling, what are your thoughts?

Financial

Related Stores

AMP
AMP

Comments

  • Woodyg22 on 29/10/2015 - 19:25

    "it doesn't even make much of a difference"

    yeap, you'll only be $75 better off at the end of the year

  • Charity on 29/10/2015 - 19:31

    5-5.2% at the top of my head, can't remember exact figure

    Try to get real numbers if you want real advice.

  • chumlee on 29/10/2015 - 19:37

    Bank shares have a better gross yield - about 9%

  • a17168202 on 29/10/2015 - 21:34
    +2

    The rate is 5.1%-5.3% ON TOP of the BBSW rate. BBSW is currently around 2.1%, but it will fluctuate over time and is correlated to the RBA cash rate. So the actual return you get based on the current BBSW rate is 7.2%-7.4%. Not too bad. It has some advantages compared to owning bank shares; when the RBA cash rate eventually goes up, the AMP note yield will go up as well, whereas the bank stocks' price will drop (in theory anyway).

    • Cluelessness11 on 30/10/2015 - 09:10

      Yeah thanks, that makes more sense now! :)

Login or Join to leave a comment
Login Join