Legal & General 6 Year Growth Deposit Bond 7
Legal & General is continuing its series of structured deposit bonds with the launch of 6 Year Growth Deposit Bond 7.
The Growth Deposit Bond series aims to return investors original capital plus a minimum return at the end of the fixed, six year term.
The latest product in the series, 6 Year Growth Deposit Bond 7 offers investors a minimum return of 15% at maturity (2.36% AER) or an upside potential of 100% of any capital growth in the FTSE 100 Index (subject to averaging), up to a maximum of 50% of their original investment, whichever is greater. Plus it aims to return the investors' original capital at the end of the fixed term, which is 6 July 2017.
The offer period for 6 Year Growth Deposit Bond 7 runs from Monday 26 April to Friday 17 June 2011and the contract start date is 6 July 2011.
Legal & General's Head of Business Development, James Harrington said, "The consensus view is that the Bank of England is likely to hold interest rates at historically low levels and the Consumer Prices Index will remain at its current level, at around 4.0%. So savers will continue to struggle to ensure their savings are keeping pace with inflation, particularly those who are using a traditional deposit account. Although equity investment has the potential to deliver returns greater than inflation over the long term, direct investment in the stock market is perceived as too risky for many investors who place a high value on preserving capital. Our Deposit Bond is proving popular with these cautious investors because it offers an attractive minimum return plus the potential for stock market linked growth while returning their initial capital. Good news all round."
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 (up to a maximum of £5,340) and for cash ISA transfers for which there is no maximum. The last date for ISA transfers is 3 June to allow time for the completion of transfer before the offer close date. The closing date for all other applications is 17 June.
Commission is 3% of the sum invested. Full details for this product are available on the Legal & General dedicated adviser website landgstructuredproducts.com.