Newcastle Building Society has launched another tranche of its Capital Safe Bond, offering 85% of th...
Newcastle Building Society has launched another tranche of its Capital Safe Bond, offering 85% of the average growth of four equity indices over a five-year term.
The Capital Safe Bond Issue 7 is linked to the FTSE 100, Dow Jones EuroStoxx 50, S&P 500 and Nikkei 225 indices and features a 100% capital guarantee.
Returns are based on the average growth in the four indices, which Newcastle believes offers diverse global exposure while limiting the effect of any potential downturn in a geographic area.
The amount of growth produced by the product is not capped. However, investors will receive only 85% of any average growth in the four markets.
Interest of 4% gross per year will be paid on all investments made before 28 March, which will be credited to an account on 4 April. Newcastle said the product is suitable for investment in a Sipp or Ssas and is also available as a Toisa or mini cash Isa.
The new product follows the group's launch earlier this month of a Guaranteed Property Bond, a building society account linked to the Halifax House Price Index.
Interest is calculated on the basis of 100% of the increase in the index over a five-year term with no risk to capital.
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