Yorkshire Guernsey has launched both a fixed rate bond and an equity-linked bond.
The fixed rate bond offers a guaranteed annual interest rate of 4% gross pa until 31 August 2005. The investment opportunity is open to new investors and existing customers who wish to roll over the current two-year stepped rate bond that matures at the end of August.
Investors can invest between £5,000 and £500,000 into the fixed rate bond, which will pay out interest at the end of August in 2004 and 2005. Interest will be paid gross and may be added to the account, or paid by Bacs.
Investors may also place additional deposits into the bond during the period that it remains open to new depositors.
Peter Symes, managing director of Yorkshire Guernsey, said: 'With the uncertainty in the money markets, this product provides investors with the security of a fixed return. This competitive rate for such a low minimum investment is sure to attract significant depositors.'
The equity-linked bond is guaranteed to pay interest equivalent to all the growth in the FTSE 100 index over a five-year term, without any risk to capital. It does not cap or limit the amount of interest an investor can receive.
The bond will pay interest initially of 4% gross AER fixed until the start of the five-year FTSE monitoring period on 1 October 2003. At the end of the term a six months' daily average level ' from 1 April 2008 to 30 September 2008 ' of the FTSE 100 will be calculated and deemed the final level, upon which interest equivalent to any growth will be paid. Using the six months averaging calculation at the end of the term will help to protect investors from any last minute falls in the index.
Pension savers need to engage with their retirement options far earlier than is currently normal to ensure they save enough through their lifetime, according to a report from the Association of British Insurers (ABI).
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
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