Press releases


David Beard, Business Development Manager
David Beard
Head of Product Development

02 July 2012

David Beard, Business Development Manager
David Beard
Head of Product Development

Legal & General’s new capital protected structured deposit bond, 6 Year Growth Deposit Bond 15, is open for investment for eight weeks from Monday 2 July and closes on Friday 24 August 2012.

This Deposit Bond offers investors a minimum return of 7.0% at maturity (1.13% 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.

The Bond will also return their original investment if held until the end of the fixed six year term, which is on 12 September 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 and Distribution said; “Cautious investors are becoming disgruntled with the low rates of interest they can get from money on deposit. They are increasingly seeking to inject some growth into their savings, without the risk to capital of investing in stocks and shares. 

Our structured deposit ‘ticks the boxes’ for these investors on three levels. Firstly, this is a deposit product that returns their original investment at maturity. Secondly, it has a fixed minimum return. Finally, it has the potential to benefit from positive growth in the FTSE 100 Index, which provides a clear and simple alternative to simply leaving money on deposit and could increase their overall return at the end of the fixed term. 

This is proving to be an attractive combination for savers who are seeking to inject the potential for higher returns from equity investment in their portfolio without the worry of stock market volatility reducing the value of their capital.”

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. There is no maximum for cash ISA transfers, or if investing in a deposit plan.

The last date for ISA transfers is 10 August to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 24 August 2012.

Commission is 3% of the sum invested. Full details for this product are available on Legal & General’s 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 email

Notes to editors

1. The contract start date is 12 September 2012 and the end of the fixed term is 12 September 2018. The maturity payment date, when Legal & General receives monies from the deposit taker, is 14 September 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 12 September 2012 and the average level of the Index in the last 12 months of the investment, commencing 12 September 2017 to 12 September 2018.
4. The average level is based on the closing level of the Index on the 12th of each month during the averaging period (13 observations).  
5. The 6 Year Growth Deposit Bond 15 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:

Mike Connolly

Mike Connolly

About Legal & General

Legal & General (Portfolio Management Services) Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.