A&L launches new guaranteed investment products

Alliance & Leicester is offering a new range of guaranteed investment products with the security of a capital guarantee if held for the full term and a minimum return at the end of the term.

These offers will be available until 18 March 2009, or earlier if sold out and the minimum investment is £1,500.

The Guaranteed Growth Plan (Issue 20) is available for either 3.5 year or 5.5 year terms - the 3.5 year term offers a maximum of 50% of the averaged growth of the Halifax House Price Index or a guaranteed minimum return of 3% if the Halifax House Price Index decreases or stays the same. Customers who choose the 5.5 year term will receive a maximum of 50% of the averaged growth of the Halifax House Price Index or a guaranteed minimum return of 10% if the Halifax House Price Index decreases or stays the same.

The Guaranteed Capital Plus (Issue 7), is available for either 3.5 or 5.5 years - the 3.5 year term offers a 10% return if the FTSE 100 has increased at the end of the term, even by one point, or a guaranteed minimum return of 1%, if the FTSE 100 has decreased or stayed the same. Customers who opt for the 5.5 year term will receive a 20% return if the FTSE 100 has increased at the end of the term, even by one point, or a guaranteed minimum return of 1%, if the FTSE 100 has decreased or stayed the same.

There are two ways to invest in the plans:

Outside an ISA - Annual Capital Gains Tax allowance can be used to mitigate any potential liability (currently £9,600 for 2008/09)

Within an ISA (only available for the 5.5 year options) - under current tax legislation, returns will be free of Income Tax and Capital Gains Tax.

The product will be of interest to customers who are willing to keep their money invested for the full 3.5 or 5.5 year term and can also be used as the investment element of the Alliance & Leicester Super Saver and Super Direct ISA.

Matt Hall, Head of Savings & Investments at Alliance & Leicester, said: "The Guaranteed Growth Plan and Guaranteed Capital Plus give investors an exposure to the potentially superior returns available from linking to equity markets or the UK housing market without putting their capital at risk. The product has tax efficiencies and ensures a guaranteed minimum return."

These offers are only available for a limited time and investors who wish to apply can visit an Alliance & Leicester branch or call 08000 68 66 99 to book an appointment with a Financial Advisor.