Legal & General’s popular Early Bonus plan series rolls out its fifth product.

27 February 2012

James Harrington - Head of Commercial Implementation, Platforms & Distribution
James Harrington
Head of Structured Solutions

Early Bonus Plan 5 is available for investment over an eight week period from Monday 27 February.

The kick out feature means that investors may receive their capital, plus a bonus payment, at set trigger points prior to the end of the six year term (9 May 2018) - see early bonus payment table below.

Legal & General’s Head of Commercial Implementation, Platforms & Distribution, James Harrington said, “Our Early Bonus series offers investors the potential for their investment to outstrip inflation plus the flexibility to access their capital if stock market growth picks up strongly.  There are five anniversaries for the kick out feature to be activated, triggering a payment and returning the original investment. The eight week offer period for this plan spans two tax years so investors with available ISA allowance could each invest up to £21,960.”

The Plan offers repayment of capital plus a bonus as long as the final level of the FTSE 100 Index is equal to, or better than, the initial FTSE 100 Index level at the investment start date (or strike date), provided the investment is held until maturity and the early bonus payment is not triggered.

The early bonus payment feature will be activated if the FTSE 100 Index is equal to, or better than, the initial index level at any of the anniversaries. If this happens the Plan will close and pay a set bonus as shown in the table.

Early Bonus plan 5

Early bonus payment
End of year123456

 If the early bonus payment feature is activated, the investment will close and there is no option for the investment to continue.

Capital is not protected with this Plan. There is the potential that some or all of the original investment may be lost if:

  • The FTSE 100 Index has fallen by less than 50% (that is 0% - 49%) of its starting level at the end of the five years - the original capital invested will be returned in full with no bonus.
  • The FTSE 100 Index has fallen by 50% or more (that is 50% - 100%) of its starting level at the end of the five year term - the original capital invested will be reduced by 1% for each 1% that the final level of the FTSE 100 Index is below its starting level. So, if the FTSE 100 Index is 60% less than its starting level, investors will receive 60% less than they invested.

The minimum investment is £3,000. The eight week offer period spans two tax years. So investors can use their ISA allowance, where available, from both the 2011/2012 (£10,680) and 2012/2013 (£11,280) tax years to invest up to £21,960 before the close on 20 April. There is no maximum for ISA transfers.
The last date for ISA applications for the 2011/2012 tax year is 5 April while the closing date for ISA applications for the 2012/2013 tax year is 20 April. The last date for ISA transfers is 5 April to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 20 April 2012.

Commission is 3% of the sum invested. Full details for this product are available on the Legal & General dedicated adviser website

Advisers can also contact Adviser Direct on 0845 273 0008 (Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  
Or e-mail

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

1. The contract start date is 9 May 2012 and the end of the fixed term is 9 May 2018.
2. This plan is not suitable for customers who may need to access their money before the end of the six year term or who may be seeking a definite return, and are not prepared to accept the risk that they may lose some or all of their investment.
3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on the start date and the final level of the Index on the maturity date and on each anniversary.
4. If the Index level on one of the early bonus anniversary dates (see below) is at, or above the initial Index level, the Plan closes early paying back the original investment plus a set bonus. The early bonus anniversary and payment dates are shown in the table below:
5. The investment should be held until maturity but can be encashed or, if held as an ISA, transferred to another ISA provider at any time. If this happens the investor may get back less than they originally invested.
6. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc rated A+ Standard & Poors). In the event that these entities become insolvent and therefore unable to meet their commitments, the investor could lose some or all of their original investment and any applicable bonus. Source
7. This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.

Early bonus anniversary date

AnniversaryEarly Bonus Payment DateBonus %
 09 May 201316 May 2013  
09 May 2014  16 May 2014 21.0%
11 May 201518 May 2015 31.50% 
09 May 2016 16 May 2016 42.00%  
09 May 201716 May 201752.50%
09 May 201816 May 201863.00%

For more information please contact:

Mike Connolly

Mike Connolly
PR Manager Savings

t: +44 (0) 1737 375365
m: +44 (0) 7802 503917

About Legal & General

Legal & General (Portfolio Management Services) Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.

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