Legal & General is launching a Dublin-based fixed rate bond product offering 40% growth over five an...
Legal & General is launching a Dublin-based fixed rate bond product offering 40% growth over five and a half years or 6.25% annual income. The bond, targeted at Isa and Pep transfer investors, will be available between 24 January and 25 February.
L&G said the underlying capital in the investment will be secure. The fund will invest in medium term loan notes issued by banks and building societies.
The minimum lump sum investment is £1,000 and there is no maximum for Pep transfers. The charges on the product are already taken into account by the rates offered and are 3% initial and 0.5% annual. IFA commission is 2% initial and there is no renewal.
The maximum mini-Isa investment is £3,000 and £7,000 for maxi-Isa investments. The product will be based on a Dublin-listed closed-end company called Legal & General Fixed Rate.
Michael Hayden, retail investments director at L&G, said: "The combination of a highly competitive fixed rate of interest and capital security should prove popular with those investors looking for a better return than the average 90 day notice account rate of 3.09% gross currently offered on the high street. The Fixed Rate Bond is also the ideal home for Pep transfer customers keen to lock in gains made on existing investments."
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