Sixth plan in 6 Year Growth Deposit Bond series from L&G
Legal & General has launched the sixth plan in its series of structured deposit bonds. 6 Year Growth Deposit Bond 6 is a six year fixed term deposit that offers investors a minimum return of 15 per cent at maturity or an upside potential of 100% of any capital growth (subject to averaging) in the FTSE 100 Index, up to a maximum of 50% of their original investment, which ever is greater.
Investors also benefit from the security of knowing their original capital is protected at the end of the fixed term, which is 11 May 2017.
6 Year Growth Deposit Bond 6 is available for a limited 8 week period from Monday 28 February to Thursday 21 April 2011. The offer period spans two tax years. So investors can use their ISA allowance, where available, from both the 2010/2011 (£5,100) and 2011/2012 (£5,340) tax years to invest up to £10,440 before the close on 21 April.
Legal & General's Head of Business Development, James Harrington said, "We have seen the Consumer Price Index reached an nine-month high in January, estimated at 4.0%, with indications from the Bank of England that CPI could rise even higher (source: the BoE -16 February 2011). The return of the spectre of rising inflation and continuing low interest rates are likely combine to increase the number of customers seeking returns that exceed the rates they could achieve in a traditional deposit account. While equity investment offers returns greater than inflation over the long term, the volatility of the stock market may put off many investors who place a high value on preserving capital. 6 Year Growth Deposit Bond 6 is designed to deliver the potential for stock market growth while protecting initial capital. In addition a structured deposit is designed to provide a tax efficient shelter for any growth if held in a cash ISA."
The minimum investment is £500 and the Bond is available as a deposit plan (for individuals, pension trustees, charities and corporate applications), new cash ISA applications and for cash ISA transfers for which there is no maximum. The last date for ISA applications for the 2010/2011 tax year is 5 April while the last date for ISA transfers is 8 April to allow time for completion of transfer before the offer close date. The closing date for ISA applications for the 2011/2012 tax year is 21 April.
Commission is 3 per cent of the sum invested. Full details of the 6 Year Growth Deposit Bond 6 are available on the Legal & General dedicated adviser website, landgstructuredproducts.com.