Guaranteed capital and guaranteed property bonds have been launched by Newcastle Building Society. ...
Guaranteed capital and guaranteed property bonds have been launched by Newcastle Building Society.
The Capital Safe Bond (CSB) offers guaranteed return of capital, even if markets fall, and offers 85% of the upside of four global indices over five years.
A three-year option is available with guaranteed growth limited to 65% of the indices. The four indices are the FTSE 100, EuroSTOXX 50, Standard & Poor's 500 and Nikkei 225 indices.
The closing index will be an average figure based on the index position on the first business day of each month during the last 12 months of the term, or six months for the three-year version. CSB is available as a cash mini Isa, Tessa-only Isa or non-Isa bond.
The Guaranteed Property Bond (BPB) offers 120% of any rise in the Halifax House Price index over a five-year term. Initial capital is returned in full.
The closing level of the index is its average level over the final 12 months of the term. Minimum investment is £1,000 and maximum is £500,000.
An income and growth option is also available, which invests 50% into the GPB and 50% into a fixed rate bond paying 5.5% gross per year.
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