Egg launches new FTSE Guaranteed Equity Bond

Egg, the Citi owned UK online bank, is launching a new three-year Guaranteed Equity Bond paying a 26% return (equivalent to 8.01% AER) in the event of ANY growth in FTSE 100 over the next three years, with no risk of losing capital invested if the bond is held for the full investment term.

The Egg Guaranteed Equity Bond offers savers the opportunity to benefit if the performance of the UK's top 100 listed companies is positive over the next three years. Even if the stock market has fallen from its start level at the end of the three years, investors are safe in the knowledge that they will still get all of their capital back at maturity. All that's needed to benefit from the 26% return is that the stock market rises by any amount above the bond's starting level.

Investments can be from £1,000 to £1,000,000 and the capital is protected as long as the bond is held until the maturity date. The offer is available for a limited period only, from 23 June to 20 July 2008.

The Egg Guaranteed Equity Bond is available online at egg.com to all customers with, or opening, an Egg Savings Account.

Jonathan Gains, Head of Investments, Egg, said: "Given current economic uncertainty and rising prices and inflation, a potential return of 26% over the full term plus the addition of capital protection mean will appeal to investors who are cautious but looking for a potentially higher return than most deposit accounts can offer."