National Savings and Investments' first ever Guaranteed Equity Bond, launched this week, is ex...
National Savings and Investments' first ever Guaranteed Equity Bond, launched this week, is expected to drive further expansion in the GEB market according to Bristol & West.
Andy Jones, Distribution Development Manager at Bristol & West, commented: "We welcome National Savings move, as we believe it will have a positive effect on the market. We believe the move will not only popularise GEBs further, but will drive expansion of the market over the next year or so."
Jones expects to see a number of subsequent 'competitive and innovative products' hitting the market.
Bristol & West's own sales of GEB products grew by over 900% in the year 2000 to 2001.
National Savings and Investments' GEB marks a fresh approach for the organisation, which announced its new corporate identity last month, it is its first equity-linked investment opportunity.
The Bond is available until 17 April 2002 subject to availability. It offers investors up to a maximum return of 65% gross over the five year investment term (10.53% AER) with no fees or charges and no risk to capital. The minimum investment is £2,000 and the maximum £1million (or £2million for joint investments). Customers investing money during the offer period (up to 17 April 2002 ) will earn interest at a rate of 3.5% pa gross.
The Guaranteed Equity Bond is linked to the performance of the FTSE 100 Index over a fixed five-year period. If the FTSE increases over the term, investors will receive the same percentage rate of return, up to a maximum of 65%. And even if the FTSE decreases over the term - something it has never done over any five-year period since it started in 1984 - customers are guaranteed to get back their initial capital in full.
Customers can apply for the Bond on 0845 964 5000 - or by completing an application available from Post Offices.
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