L&G offers minimum returns of 8% over six years
From Products Jan 23 2012 BY: Esther Armstrong
, Senior Reporter
, Portfolio Adviser
Legal & General has launched the twelfth product in its series of structured deposit bonds, offering a minimum return of 8% at maturity.
The 6 Year Growth Deposit Bond 12 will either return 8% at the end of its term or 100% of any capital growth in the FTSE 100 Index, up to a maximum of 50% of the original investment, depending which is greater.
The original investment will also be returned at the end of the fixed six-year term on 28 March, 2018.
But if investors take out some or all of their money before the end of the term they might get back less than they originally invested.
James Harrington, L&G's head of commercial implementation, platforms and distribution, said: “The potential to benefit from positive growth in the FTSE 100 index, while protecting their original capital from the risk of a fall in the value of the stock market, is proving an attractive proposition for cautious investors who are seeking to inject growth into their savings.
“The added benefit of a fixed minimum return at the end of the six years means that this style of structured deposit bond could appeal to investors who are holding money on deposit."
The minimum investment in the bond is £500 and commission is 3% of the sum invested. The deposit-taker is Royal Bank of Scotland and return of the investment is dependent on the bank remaining solvent.