Legal & General 6 Year Growth Deposit Bond series launches eighth plan.
24 June 2011
6 Year Growth Deposit Bond 8
Legal & General’s Head of Business Development, James Harrington said, “Last month, Bank of England Governor Mervyn King warned energy prices could push inflation up to 5 per cent by the end of the year. With the Consumer Prices Index likely to remain at or above its current level for some time yet we are experiencing continued demand for these deposit bonds, which help savers ensure their savings keep pace with inflation. We are also seeing growth in the use of our structured products as part of the portfolio planning process as more and more advisers, and their clients, experience the quality of our products.Our Growth Deposit Bond offers an attractive minimum return (13.5%), the potential higher returns linked to stock market growth plus 100 per cent protection of their initial capital. Three good reasons for advisers to recommend this product for cautious investors.”
The latest product in the series, 6 Year Growth Deposit Bond 8, offers investors a minimum return of 13.5% at maturity (2.13% 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 six-year fixed term, 31 August 2017.
The offer period for 6 Year Growth Deposit Bond 8 runs from Monday 20 June to Friday 12 August 2011 and the contract start date is 31 August 2011.
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 29 July to allow time for the completion of transfer before the offer close date. The closing date for all other applications is 12 August.
Commission is 3% of the sum invested. Full details for this product are available on the Legal & General dedicated adviser website www.legalandgeneral.com/advisercentre/investments/our-products/structured-products/
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 31 August 2011 and the end of the fixed term is 31 August 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 31 August 2011 and the average level of the Index in the last 12 months of the investment, commencing 31 August 2016 to 31 August 2017.
- The average level is based on the closing level of the Index on the 31st of each month during the averaging period (13 observations).
- 6 Year Growth Deposit Bond 8 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 31 December 2010, we were responsible for investing £365 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
6 Year Growth Deposit Bond 8 is provided by Legal & General (Portfolio Management Services) Limited.
For more information please contact:
PR Manager Savings
t: +44 (0) 1737 375365
m: +44 (0) 7802 503917
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.