Legal & General launches new Capital Control Bond

Legal & General has announced the launch of a new With Profits bond that includes 5 and 10 year guarantee options - the Capital Control Bond is available from the beginning of April.

The Capital Control Bond offers investors the potential for steady long term growth with a choice of capital guarantees and guaranteed return options. The standard guarantee option offers customers capital security at the 10th anniversary.

Jamie Wright, Product Strategy Director (Savings) said: "There is no requirement for customers to cash in their investment to benefit from the guarantee, which we believe will make this new investment opportunity very attractive to investors who are looking for capital security. We have seen sales of With Profits bonds rise by 96% in 2009, which is a clear sign of the continued appeal of With Profits among cautious investors who are seeking long-term real returns."

Customers do not have to cash in their bond to benefit from any guarantees. To allow the customers to remain invested, and benefit from the guarantee, units will be automatically added to their bond at the relevant anniversary if the cash in value is less than the guaranteed value .

There are two versions of Capital Control Bond available, allowing customers to choose the bond that suits their investment needs, whether they are looking for the potential of capital growth or a steady stream of income. Capital Control Bond also gives them a choice of guarantees. Customers can choose between a capital guarantee or minimum level of return on the tenth anniversary, plus they have the option to add a 5 year capital guarantee to either. As you would expect there is an additional charge for the non-standard guarantees and any guaranteed amount will reduce if the customer takes an income or cashes in part of their bond.

Capital Control Bond has no fixed term but should be regarded as an investment for at least five years, ideally longer. The minimum investment is £5,000.