Protected Equity Bond summary
Invest for potential stock market linked growth, whilst minimising the risks to your capital
The current Protected Equity Bond is a 6 year fixed term investment linked to the performance of the FTSE 100 Index. This means you can benefit from potential stock market linked growth whilst minimising the risks of direct stock market investment.
Growth: 100% of any growth in the FTSE 100 Index, subject to final year averaging, up to a maximum return of 51% of your original investment (7.10% gross p.a./AER*)
To benefit from the potential stock market returns, all you have to do is ensure your original investment amount is held to the end of the six year term with no withdrawals.
The current Protected Equity Bond available is the Legal & General Stock Market Linked Savings Bond 14 (The Plan).
What does protected mean?
The Plan is designed to return your original investment in full at maturity, protecting your investment if the FTSE 100 Index has fallen in value. Please note you won't benefit from any dividend income which you could have received if you'd invested directly in shares or investment funds.
Key features
- Potential for growth linked to the performance of the FTSE 100 Index, up to a maximum of 51% of your original investment
- Tax free cash ISA option available
- Invest from £3,000
- Six year term
Although you can access funds held in the ISA, you must hold your original investment for the full 6 years with no withdrawals to benefit from the stated returns.
View the full account details
View the risks associated with the Protected Equity Bond
Limited availability
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The Protected Equity Bond closes on 10 March 2012 and may be closed earlier if oversubscribed.
Key dates:
- Offer available: 23 January 2012 to 10 March 2012
- Investment start date: 29 March 2012
- Maturity date: 29 March 2018
About the investment
How the investment works: Find out how the return is calculated, or try our Investment Calculator to see what could happen to your investment.
Notes
Tax treatment is dependent on individual circumstances. The tax information on our 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. This allows you to compare any minimum and maximum potential returns with other savings products. The gross rate of interest is the interest payable before any income tax is deducted.