Scottish Friendly is launching a with-profits bond with a bonus rate of 6% guaranteed until January ...
Scottish Friendly is launching a with-profits bond with a bonus rate of 6% guaranteed until January 2001.
The product, the Growth & Security Bond, has a minimum initial investment of £3,000. It also has a regular withdrawal option for monthly, quarterly, half yearly or annual income. The minimum regular withdrawal is £50. IFA commission is 5.25% initial and there is no renewal.
There is no automatic penalty for early encashment of the bond but Scottish Friendly said it reserves the right to apply a market value adjustment on withdrawals. No adjustment will be applied on the fifth and 10th anniversary of investment, on death or on regular withdrawals. An extra 1% allocation is offered on investments of over £10,000, taking the allocation rate to 101%, and there is a loyalty bonus of 2.5% in extra units payable after 10 years.
Calum Bennie, direct marketing manager at Scottish Friendly, said: "This product is designed for investors looking for a lump sum plan which avoids the volatility of the stock market but also provides greater growth potential than a building society investment."
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