Saga Personal Finance launches innovative risk-free investment

Saga Personal Finance is today announcing the launch of an innovative new savings product, the Saga 50:50 Guaranteed Equity Bond.

The bond allows the deposit to be split into two equal amounts: for the first half, the customer is offered a return of either a maximum of 80% of the growth in the FTSE 100 index over the five year term, or a minimum of 10% gross, whichever is the greater. Customers can choose to invest the second half of their funds in either a

1 Year Fixed Rate Bond that pays 10% gross OR
A 5 Year Monthly Income account that guarantees to pay Bank of England Base Rate (BBR) + 0.50%

This innovative package has been designed specifically for over 50s who like to plan their savings for both the long and the short term, and often like to ensure their capital is protected. This new bond allows customers to benefit from the growth in the FTSE 100, without putting their capital at risk. Additionally, and importantly for over 50s, the guaranteed minimum return of 10% gross offers an element of protection against inflation over the five year term.

The second half of the bond provides customer choice: an excellent fixed return with the flexibility of one year access; or a regular income combined with the comfort of beating base rates for the next five years.

Andrew Goodsell, Chief Executive of Saga Group Ltd, commented: “There are a plethora of guaranteed equity bonds on the market but few that offer investors the degree of flexibility and protection that ours does. The FTSE 100 has been on a steady upward path over the last few years and we wanted to design a product that allows the more cautious saver to benefit from any future gains in the market without the risk of having to invest directly in it.”