Scottish Mutual launches index-linked bond

Scottish Mutual has launched a five-year income bond linked to the performance of the Dow Jones Eurostoxx 50 and offering capital protection. The bond, EA5Y, has an income option offering 5% annual income net of tax ' equivalent to 6.25% gross for basic rate taxpayers ' or a growth option offering either 0.41% income per month net of tax or a 25.5% growth payment net of tax payable at the end of the five year term. Capital is guaranteed provided the Eurostoxx index has not during a defined tracking period fallen by more than 25% from its level on the investment date.