AIG Life is launching the third series of its three-year stockmarket income bond offering annual inc...
AIG Life is launching the third series of its three-year stockmarket income bond offering annual income of 8.5%.
The product is available between 8 May and 23 June and offers the potential of returning the full amount invested as long as the FTSE 100 does not end below its starting level after three years.
Only if the index is below its starting level and has fallen by 20% or more at any time during the investment period, will the initial level of capital return be reduced in line with the fall in the stock market over the three years.
The bond also offers a monthly income option of 0.68% or a growth option of 27.3% of the amount invested. The minimum investment is £5,000 and there is no maximum. IFA commission is 3% initial. An enhancement of up to 0.7% of the amount put into the bond is available to early investors. For those putting in between £5,000 and £25,000 before 26 May the early investment bonus is 0.5%, going up to 0.6% on investments between £25,000 and £50,000 and to 0.7% for investments in excess of £50,000. For those investing between 26 May and 16 June the bonus rates are halved to 0.25%, 0.3% and 0.35% respectively.
The three year investment period for the bond begins on 10 July 2000 and ends on 10 July 2003. The capital on the product can be withdrawn after three years or switched into AIG's cash fund or its FTSE 100 Total Return Tracker Fund.
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