Britannia International has launched a guaranteed bond that combines an immediate access income acco...
Britannia International has launched a guaranteed bond that combines an immediate access income account with a growth account linked to two stock markets.
The Guaranteed Income and Growth Bond allows up to 50% of the deposit to be placed in an income account with a rate guaranteed to be at 0.75% above the prevailing Bank of England Base Rate. Interest can be paid monthly to provide a regular income or if this is not required can be capitalised to the account on a monthly basis. Access is also available with up to five no-notice penalty-free withdrawals per annum.
The other 50% is placed in a growth account. This is linked to the performance of the FTSE 100 and S&P 500 and will pay 100% growth of these plus the full return of the original capital. Although the growth account is designed for investment, there is an emergency withdrawal feature available subject to interest penalty.
Wendy Shimmin, marketing manager at Britannia International, says: "We wanted to launch a product that combines income and growth. The product was launched as a result of customer demand because they did not want to put their money into two separate accounts. They would rather keep it in the one account but have the option of the two investment choices." It is available from January 2005 and early investment interest of 5% gross is paid on all deposits up to the bond start date of 6 April 2005.
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