ftse tracker lasts five-and-a-half years; fixed rate bond, one year
Alliance & Leicester International (ALIL) has launched a five-and-a-half-year capital protected bond that is linked to the FTSE 100 as well as a one-year fixed rate bond.
The Capital Guaranteed Maximum Growth Bond runs for five and a half years unless the FTSE 100 grows by more than 30%, then it will mature after three years. If this is the case then investors will receive all their capital back plus 30%.
The bond is aimed at the short to medium-term investor and customers can invest between £5,000 and £1,000,000 into the product.
Simon Hull, managing director of ALIL, said: "There are no administration or management charges nor is there any risk to capital, unlike if funds were invested directly into stocks and shares. For early investors we are also offering a highly competitive fixed rate of 6% gross pa until the day before the bond term commences on 15 September 2005."
ALIL has also launched a one-year fixed rate bond, with an interest rate of 4.75%.
New and existing customers can deposit between £5,000 and £1,000,000 into the bond which will mature on 31 May 2006. As with previous bonds in the ALIL range, investors can choose to have their interest paid on maturity of the bond, or on a monthly basis.
Interest can be paid either by transfer into another ALIL account, or by transfer to a bank or building society account in the Isle of Man, UK or the Channel Islands. There is also a guaranteed full return on capital upon maturity.
Hull said: "Due to the demand for such offers, we have decided to launch our seventeenth issue limited edition bond. The one-year fixed rate bond is very straightforward, giving savers the security of a fixed rate return and a guaranteed return of capital."
Capital Guaranteed Maximum Growth Bond: five and a half-year cap-protected bond linked to FTSE 100.
Minimum investment £5,000; max investment £1m. Term starts 15 September 2005.
Alil also launching one-year fixed rate note with a return of 4.75%.
Feasibility study due
'Let’s be bold enough to demand change'
Joint life second death option added to relieve tax burden on couples gifting assets
Backed by Schroders, LGIM and the IA
New system for funds without without three-year track record