No losers with a new equity bond
National Savings and Investments has announced the launch of a new scheme which guarantees investors will gain.
08:01 26 May 2004
National Savings and Investments has announced the launch of a new scheme which guarantees investors will gain, irrespective of market performance.
The Guaranteed Equity Bond means investors can expect to see returns whether the FTSE 100 index rises or falls.
This is achieved by offering a return equal to 75 per cent of any growth in the index or a minimum return of 15 per cent gross, whichever is the greater.
National Savings and Investments marketing director, Gill Cattanach, said: "This is an unmissable win-win investment for customers who want the opportunity to gain from growth in the FTSE, with the added advantage of receiving a guaranteed return on their capital should the FTSE drop."
She continued by saying the bond offered "the reassurance that, should the market fall, not only will you get your capital back, you'll also receive a guaranteed minimum return on your investment."
The bond is set over a five-year term, during which time investors' capital is completely secure; the minimum investment is 1,000.
The GEB will be on sale for a limited period of eight weeks from June 2nd to July 27th. Investors are encouraged to buy early as it may close before the deadline if fully subscribed.