National Savings and Investments (NS&I) has launched the second issue of its Guaranteed Equity Bond....
National Savings and Investments (NS&I) has launched the second issue of its Guaranteed Equity Bond.
The product, which is capital guaranteed, was launched in a bid to improve NS&I's competitiveness and increase its share of the savings and investments market.
The group, which recently rebranded and created an intermediary sales division, hopes the bond will allow it to compete with private structured-product providers. The product offers returns linked to the performance of the FTSE 100 and has already received praise from the likes of Chase de Vere.
Returns on the index are capped at 70%, with initial capital guaranteed to be returned at maturity after five years.
Should the index rise by more than 70% during the product's lifetime, investors will receive no extra returns.
The bond, which is backed by HM Treasury, has a minimum investment of £2,000 and maximum of £1m. It will remain open to investors until 28 August.
Early investments earn interest of 3.5% per year gross, paid at maturity.
The bond can be bought through post offices or by calling 0500 500 000 with debit card details.
Intermediaries should contact 0845 971 5401.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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