Legal & General launch seventh plan in 6 Year Growth Deposit Bond series.
19 April 2011
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 www.landgstructuredproducts.com.
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 firstname.lastname@example.org
Notes to editors
- The contract start date is 6 July 2011 and the end of the fixed term is 6 July 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 FTSE 100 Index will be measured using the initial level of the index at close of business on 6 July 2011 and the average level of the Index in the last 12 months of the investment, commencing 6 July 2016 to 6 July 2017.
- The average level is based on the closing level of the Index on the 6th of each month during the averaging period (13 observations).
- 6 Year Growth Deposit Bond 7 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.
For more information please contact:
PR Manager Savings
t: +44 (0) 1737 375365
m: +44 (0) 7802 503917