Nationwide offers L&G GEB Issue 12

From Tuesday 6 October 2009, Nationwide Building Society will offer Issue 12 of the Legal & General (L&G) Capital Guaranteed Multi-Index Equity Bond (GEB).

The new GEB guarantees a minimum return on the investment of 12% gross at the end of six years and the potential for stock market linked growth, subject to final year averaging, of up to 50% when held for the full six years. If the maximum potential growth is achieved, this is equivalent to 6.99% AER.

Customers who invest in Issue 12 of the GEB also have the opportunity to take out a new one year Guaranteed Savings Bond (GSB) at any Nationwide branch. The Guaranteed Combination Plan comprises of the GEB and GSB together and this could help savers make the most of their money in the current low interest rate environment.

The Guaranteed Equity Bond is available between 6 October and 28 November 2009, but could close earlier if fully subscribed. The rates for the Guaranteed Savings Bond are effective from 6 October 2009 and are subject to change and may be withdrawn without notice.

Robin Bailey, Nationwide's divisional director for investments, said: "Nationwide's GEB could be ideal for savers who are attracted by the potentially higher returns of investing in stock market linked funds, but do not want to risk their original capital. With Issue 12 of the GEB, investors will not only get back their original capital, but will also receive a guaranteed minimum return of 12% gross at the end of six years. At the same time, there is also the opportunity for further potential growth linked to the performance of the FTSE 100, EuroSTOXX 50 and S&P 500 stock market indices.

"As with the previous GEB offered, Issue 12 is available as both a deposit plan and as a cash ISA. The ISA, in particular, could be of interest to those aged 50 or over between 6 October 2009 and 5 April 2010, as they are entitled to a greater overall annual ISA allowance limit of £10,200. Of this, £5,100 can be invested in a cash ISA and the remaining amount in a stocks and shares ISA, or, alternatively, the full amount can be invested in a stocks and shares ISA.

"Savers can also take out the new one year Guaranteed Savings Bond when taking a Guaranteed Equity Bond out at the same time and for at least the same amount to get the Guaranteed Combination Plan. We believe that this will be welcomed by savers who are looking for the potential for stockmarket linked growth in this low interest rate environment. This could enable customers to be more flexible with their investments, mixing shorter term deposits with a six year GEB."