Skipton Building Society has launched a five-year guaranteed growth bond which assures investors a g...
Skipton Building Society has launched a five-year guaranteed growth bond which assures investors a guaranteed return of 126% with a potential to make as much as 50% gross earnings by tracking the FTSE 100 over a period of five years.
However, one of the key features of the bond is that it has an investment range of £2000 to £10,000.
Skipton will pay a maximum of £2600 before tax as additional guaranteed capital per investor.
Moreover, the investor can earn additional return if the FTSE 100 Index has increased on the previous year for at least four times in five years.
However, Mark Smitheringale, head of corporate communications at Skipton says:"The FTSE 100 is at its lowest so the only way is up. There are two types of customers, at one end of the spectrum there is the risk averse customer who would go for deposit and savings account and at the other end of the spectrum there are investors who would invest directly in equities, for example. Skipton's new product offers investors a middle ground that combines both a core guaranteed element and a risk element."
If the FTSE has outperformed itself four times then the investor receives 8% returns. If an investor chooses to lock in capital in the guaranteed bond, they walk away with a gross minimum of £2600 more than he put in after five years, and a maximum of £5000.
The level of Footsie will be noted at the close of business on 2 October 2001 and thereafter on 2 October every subsequent year. Taxes are levied as standard.
The bond will be open for investment until 14 September 2001. For further information call freephone 0800 44 6776.
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