Overview of Protected Equity Bond product range
Is a Protected Equity Bond right for me?
The current Protected Equity Bond available is the Legal & General Stock Market Linked Savings Bond 5 (The Plan).
Whether you are new to investing, or simply want to expand your portfolio, the Protected Equity Bond offers a way to benefit from potential stock market linked growth whilst minimising the risks of direct stock market investment.
The 6 year Protected Equity Bond is designed to provide:
- Growth: 100% of any stock market linked growth**, up to a maximum return of 55% of your original investment (7.57% gross AER*).
- Protection: Helps to protect your investment from any overall falls in the stock market at maturity.
- Tax benefits: Available as a cash ISA for tax free growth.
- Choice: Available as a Deposit Plan or ISA Plan.
Optional exclusive savings bond
Get access to exclusive rates with our 1 and 3 year fixed rate Combination Savings Bonds, when you take out the 6 year Protected Equity Bond. This means you can enjoy short term growth with the Combination Savings Bond, and invest for the future too. You can choose to apply for both 1 and 3 year Combination Savings Bonds, subject to minimum and maximum investment amounts
Minimum investment amount: £3,000 or £3,600 if you open a Protected Equity Bond ISA
Term: 1and 3 year.
Rate: Earn up to 3.25% gross p.a.† / AER* in the 1 year annual option or 4.10% gross p.a.† / AER* in the 3 year annual option.
Your investment choices at a glance:
Protected Equity Bond
- Take out the Protected Equity Bond only
Protected Equity Bond + Combination Savings Bond
- Take out the Protected Equity Bond and open our exclusive Combination Savings Bond at the same time
Important information & risks of the Protected Equity Bond
Offer closes 16 October 2010. The Protected Equity Bond currently available is the Stock Market Linked Savings Bond 5 which is provided by Legal & General (Portfolio Management Services) Limited.
† Rate illustrated applies to all balances (subject to a minimum balance of £3,000) when interest is paid annually on the 3 year fixed rate Combination Savings Bond. Early closure permitted subject to 270 days loss of interest.
* AER stands for Annual Equivalent Rate which illustrates what the interest rate would be if interest was paid and compounded once each year. For the Protected Equity Bond this allows you to compare any minimum and maximum potential returns with other savings products. The gross rate of interest is the interest rate payable before any income tax is deducted (if you pay tax) and the net rate of interest is the interest payable after any income tax is deducted (if you pay tax).
** Subject to final year averaging.
If the original investment is not held for the full 6 year term the final amount returned may be less than the original investment. The value of your investment may depreciate in real terms due to inflation. The Protected Equity Bond does not invest directly in company shares and you will not receive any dividend income.
Before the start date and after the fixed term, Legal & General put your money in a client bank account. During the fixed term your money is held by Nationwide Building Society.
If Nationwide Building Society, or the bank or building society providing the Legal & General client bank account were to become insolvent you may lose some or all of your money.
Tax treatment is dependent on individual circumstances. The tax information on these web pages is based on our understanding of current law and HM Revenue & Customs practice which can change.