Ten in a row - Legal & General launch 6 year Growth Deposit Bond 10.
11 October 2011
Legal & General has launched the tenth plan in its series of structured deposit bonds. The new plan, the 6 Year Growth Deposit Bond 10, opens for investment for seven weeks from Monday 10 October to Friday 25 November 2011.
Legal & General’s Head of Business Development, James Harrington said, "We are experiencing continued demand for our Growth Deposit Bond, which at the end of the six year term offers a fixed minimum return and aims to return an investor’s initial capital."
The 6 Year Growth Deposit Bond 10, offers investors a minimum return of 9.0% at maturity (1.45% AER) or, if greater 100% of any capital growth in the FTSE 100 Index (subject to averaging), up to a maximum of 50% of their original investment. Investors should also receive the return of their original capital at the end of the six year fixed term, 14 December 2017. If investors take out some or all of their money before the end of the fixed term they may get back substantially less than they originally invested.
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 11 November 2011 to allow time for completion of the transfer before the offer close date. The closing date for all other applications is 25 November 2011.
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 14 December 2011 and the end of the fixed term is 14 December 2017. The maturity payment date is 21 December 2017.
- 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.
- The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on 14 December 2011 and the average level of the Index in the last 12 months of the investment, commencing 14 December 2016 to 14 December 2017.
- The average level is based on the closing level of the Index on the 14th of each month during the averaging period (13 observations).
- The 6 Year Growth Deposit Bond 10 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 substantially 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 The Royal Bank of Scotland Plc (RBS).
- 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 2011, we were responsible for investing £370 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.
For more information please contact:
PR Manager Savings
t: +44 (0) 1737 375365
m: +44 (0) 7802 503917