Nationwide opens guaranteed equity bond

Saturday, 03 October 2009 12:01

Nationwide is preparing to roll out the latest version of a guaranteed equity bond offering returns of 12 per cent of six years.

The building society is offering issue 12 of the Legal & General Capital Guaranteed Multi-Index Bond (GEB) on October 6th.

As well as the guaranteed minimum return of 12 per cent after six year, there is the potential for stock market-linked growth.

It means, if the FTSE100, EuroStoxx 50 and S&P500 grow over that time to their maximum potential, an equivalent rate of 6.99 per cent AER could be earned.

Robin Bailey, Nationwide’s divisional director for investments, said: “Nationwide’s GEB could be ideal for savers who are attracted by the potentially higher returns of investing in stock market-linked funds, but do not want to risk their original capital.”

A minimum investment of £3,000 is required to invest in the bond. Customers who put their cash into the investment will be able to take out a new one-year Guaranteed Savings Bond (GSB) with Nationwide.

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