Press releases

Legal & General Early Bonus Plan 10 offers a 50.4% bonus at maturity.

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

12 November 2012

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

Legal & General’s tenth product in its series of early payment capital at risk investment plans, Early Bonus Plan 10, launched last week. It offers investors a final bonus payment of 50.4% gross at the end of a six year investment term. 

The plan also incorporates an early exit feature (sometimes referred to as a “kick out” feature) at four set trigger points starting at the second anniversary. The kick out feature pays investors their capital, plus a bonus payment, prior to the end of the term (16 January 2019) - see early bonus payment table below.

The Plan is available for investment until Friday 21 December 2012.

"David Beard, Business Development Manager said, “Starting at the second anniversary, if the stock market is the same level or higher than the strike date, investors could receive a 16.8% return and the investment will close. At each subsequent anniversary there is another opportunity for the kick out feature to trigger an early payment.

Our Early Bonus Plan series offers the potential for what we feel is a relatively high return, but does require investors to accept risk to their capital, including the risk of counterparty default. Investors will get back their original investment provided the FTSE 100 Index has not fallen at the maturity date by 50% or more of the starting Index level on 16 January 2013."

Early bonus payment

The Plan offers repayment of capital plus a bonus as long as the level of the FTSE 100 Index on the second anniversary, or subsequent anniversaries, is equal to, or better than, the initial FTSE 100 Index level taken on the start date (also known as the strike date). 

If the early bonus payment feature activates the Plan will close, pay a set bonus as shown in the table and there is no option for the investment to continue. If early payment is not activated the Plan continues until the next anniversary/maturity: 

Bonus rate table:

End of year123456
 Bonus N/A 16.8% 25.2% 33.6% 42.0%50.4% 


Note*: Capital is not protected with this Plan. Between 50% and 100% of the original investment will be lost if the FTSE 100 Index has fallen by 50% or more (that is 50% - 100%) of its starting level at the end of the six year term. The original capital invested will be reduced by 1% for each 1% that the final level of the FTSE 100 Index is below its starting level. So, if the FTSE 100 Index is 60% less than it’s starting level, investors will receive 60% less than they invested.

The minimum investment is £3,000. Investors can invest up to £11,280 in a stocks and shares ISA for the 2012/2013 tax year. There is no maximum for ISA transfers. The last date for ISA transfers is 7 December 2012 to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 21 December 2012.

Commission is 3% of the sum invested. Full details for this product are available on the Legal & General dedicated adviser website

Advisers can also contact Solutions First on 0370 050 0614 (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

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 16 January 2013 and the end of the fixed term is 16 January 2019.

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, and are not prepared to accept the risk that they may lose some or all of their investment.

3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at the close of business on the start date and the final level of the Index on the maturity date and on each anniversary.

4. If the FTSE 100 Index has fallen by less than 50% of its starting level at the end of the six years, the investor will receive back their original investment, but no bonus.

5. If the Index level on one of the early bonus anniversary trigger dates is at, or above the initial Index level, the Plan closes early paying back the original investment plus a set bonus. 

6. The investment should be held until maturity but can be encashed or, if held as an ISA, transferred to another ISA provider at any time. If this happens the investor may get back less than they originally invested.

7. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc). In the event that these entities become insolvent and therefore unable to meet their commitments, the investor could lose some or all of their original investment and any applicable bonus.

8. 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:

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.