Sixth plan in 6 Year Growth Deposit Bond series from Legal & General.
07 March 2011
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 to 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,
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 email@example.com
Notes to editors
- The contract start date is 11 May 2011 and the end of the fixed term is 11 May 2017.
- This plan is not suitable for customers who may need to access their money before the six year maturity or who may be seeking a definite return.
- The growth of the index will be measured using the initial level of the index at close of business on 11 May 2011 and the average level of the index in the last 12 months of the investment, commencing 11 May 2016 to 11 May 2017.
- The average level is based on the closing level of the index on the 12th of each month during the averaging period (13 observations).
- 6 Year Growth Deposit Bond 6 is designed to return the original investment at the end of the fixed term. If investors take out some or all of their money before the end of the fixed term, they may get back less than they originally invested.
- Taxation - as this is a deposit investment any growth received is treated as interest. The cash ISA (and an ISA transfer) is a tax free investment. Any growth received through the deposit plan will be paid net of UK income tax at the basic rate (currently 20%). Non tax payers can reclaim this tax. Higher and additional rate tax payers will have further tax to pay. SIPP, SSAS, charity or company applicants can be paid without the deduction of income tax but only where sufficient documentary evidence is provided.
- The Deposit taker is Royal Bank of Scotland plc.
- The return on the original investment and any applicable returns is dependent on RBS paying this money to us. This might not happen if RBS default or become insolvent and unable to repay us this money. If they don't repay us, the investor could lose some or all of their original investment. RBS is a member of the Financial Services Compensation Scheme which covers the first £85,000 each customer holds with each bank or building society.
- This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.
The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 30 June 2010, we were responsible for investing £331 billion worldwide on behalf of investors, policyholders and shareholders. We also had over 6.9 million customers in the UK for our life assurance, pensions, investments and general insurance plans.
For more information please contact:
PR Manager Savings
t: +44 (0) 1737 375365
m: +44 (0) 7802 503917
About Legal & General
Legal & General Group Plc.
One Coleman Street
Registered in England. Registered Number: 1417162.
Legal & General Group Plc is a holding company, subsidiary undertakings of which are fully authorised as appropriate under the Financial Services and Markets Act in respect of their investment activities in the UK.
© Legal & General Group Plc 2011