Protected Equity Bond summary Invest for potential stock market linked growth, whilst minimising the risks to your capital
The Protected Equity Bond is a 6 year fixed term investment linked to the performance of three of the world's leading stock market indices. This means you can benefit from potential stock market linked growth whilst minimising the risks of direct stock market investment.
Growth: You'll receive 100% of any stock market linked growth**, up to a maximum return of 55% of your original investment (7.57% gross AER*).
To benefit, 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 5 (The Plan).
Although this is a Legal & General product, during the fixed term, your funds are held by Nationwide as the deposit taker. This means that from the investment start date through to maturity we will be helping to look after your money. Before the start date and after the fixed term, Legal & General put your money in a client bank account separate from their own money. For full details of where your money is held before and after the six year fixed term, please refer to the Key Features Document.
What does protected mean?
The Plan is designed to return your original investment in full at maturity, protecting you if the stock markets have fallen in value. This is because your money is not invested directly in stock market. 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 growth linked to stock market performance, up to a maximum of 55% of your original investment**
- Tax free cash ISA option available
- Invest from £3,000
- Six year term
- No withdrawals from Deposit Plan
- 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
Limited availability
The Protected Equity Bond closes on 16 October 2010, and may be closed earlier if oversubscribed.
Key dates:
- Offer available: 23 August 2010 to 16 October 2010
- ISA transfer deadline: 1 October 2010
- ISA application deadline: 16 October 2010
- Investment start date: 4 November 2010
- Maturity date: 4 November 2016
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.
Three ways to invest You can use your cash ISA allowance, transfer in existing cash ISAs, or open a Deposit Plan.
Interested in the Protected Equity Bond? Apply online...
Or find out more about Combination Savings BondImportant information & risks
* 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.
Tax treatment is dependant on individual circumstances. The tax information in this brochure is based on our understanding of current law and HM Revenue & Customs practise which can change.
** The maximum potential return is up to 55% of your original investment amount and is 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.
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.