Launch of 6 year Growth Deposit Bond 14
08 May 2012
Legal & General's series of capital protected structured deposit bonds have now run since May 2010. The latest product in the range, 6 Year Growth Deposit Bond 14, 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 the original investment.
This Deposit Bond, which also marks the second anniversary of the series, opens for investment on Tuesday 8 May and closes on Friday 29 June 2012.The Bond will also return their original investment at the end of the fixed six year term, which is on 18 July 2018. 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.
David Beard, Legal & General’s Business Development Manager, Platforms & Distribution said; “The long running success of this structured deposit series is due to its appeal for cautious investors on three levels. Firstly, the dual benefits of capital protection and a fixed minimum return at the end of the six years present a clear and simple offer, which provides an alternative to simply leaving money on deposit. However, the third benefit - the potential to benefit from positive growth in the FTSE 100 Index - has also proved to be an attractive additional reason for savers who are seeking to inject some growth into their savings without risk to capital to invest in this product range.”
The minimum investment is £500 and the Bond is available as a deposit plan (for individuals, pension trustees, charities and corporate applications). Investors can use their cash ISA allowance, where available, and invest up to £5,640 for the 2012/2013 tax year before the close on 29 June. There is no maximum for cash ISA transfers, or if investing in a deposit plan.
The last date for ISA transfers is 15 June to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 29 June 2012.
Commission is 3% of the sum invested. Full details for this product are available on Legal & General's 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 email email@example.com
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 18 July 2012 and the end of the fixed term is 18 July 2018. The maturity payment date, when Legal & General receives monies from the deposit taker, is 20 July 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.
3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on 18 July 2012 and the average level of the Index in the last 12 months of the investment, commencing 18 July 2017 to 18 July 2018.
4. The average level is based on the closing level of the Index on the 18th of each month during the averaging period (13 observations).
5. The 6 Year Growth Deposit Bond 14 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.
6. 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.
7. The Deposit taker is Cater Allen Limited.
8. The return of the original investment and any applicable return is dependent on Cater Allen paying this money to us. This might not happen if Cater Allen 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. Cater Allen is a member of the Financial Services Compensation Scheme, which covers the first £85,000 each customer holds with each bank or building society.
9. This investment does not invest directly into the companies that make up the FTSE 100 Index so no dividend income is received.
For more information please contact:
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.