Protected Equity Bonds

Invest with minimal risk to your capital and potential for further growth

Is a Protected Equity Bond right for me?

The current Protected Equity Bond available is the Legal & General Stock Market Linked Savings Bond 14 (The Plan).

Whether you are new to investing, or simply want to expand your portfolio, the current 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 growth in the FTSE 100 Index**, up to a maximum return of 51% of your original investment (7.10% gross p.a./AER*).
Protection: Helps to protect your investment from any overall falls in the FTSE 100 Index at maturity.
Tax benefits: Available as a cash ISA for tax free growth.
Choice: Available as a Deposit Plan or ISA.

Important information & risks of the Protected Equity Bond

Offer closes 10 March 2012.

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.

* 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.

Interested in finding out more about Protected Equity Bond?