Bank of Scotland International has launched a bond investing in the FTSE 100 and one linked to the S...
Bank of Scotland International has launched a bond investing in the FTSE 100 and one linked to the S&P 500 index.
The sterling Capital Guaranteed Savings Bond 12 is a three-year product with a minimum investment of £10,000. It offers 100% capital protection, so whatever happens to the markets; investors will always get their initial investment back. The closing date for application is 1 July. However, investors who open an account early receive 4.55% gross/AER on their investment until the start of the bond.
The product will mature on 7 July 2008. If the FTSE 100 index has risen or stayed at the same level at the end of the three-year term, the investment will earn the higher of either 70% of the gains made by the FTSE 100 index or 15% gross interest (4.77% AER). If the index has fallen over the product term, clients will still get their full initial investment returned.
For the international dollar investor, Bank of Scotland International is also offering a three-year capital guaranteed product denominated in the US currency. With the same closing date of 1 July 2005 and a minimum investment of $20,000, the US Dollar Capital Guaranteed Savings Bond 3 gives investors a 100% guarantee that their initial investment will always be returned. Once again, Bank of Scotland International is encouraging early investors with an incentive of 2.1% gross/AER interest on their account until the bond starts.
The US Dollar Capital Guaranteed savings Bond 3 will mature of 7 July 2008. If the S&P 500 Index has risen or stayed the same at the end of the three-year term the investment will earn the greater of 50% of the percentage rate of increase of the S&P 500 Index or 10% gross interest (AER 3.23%) on the original investment.
If the index has fallen over the product term, investors will still get their full initial investment returned.
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