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Press release95% OF THE UP WITH 0% OF THE DOWN09 October 2003New style Guaranteed Equity Bond from National Savings and Investments provides unlimited growth potential with 100% capital protection Following strong demand from customers, National Savings and Investments (NS&I), the government-backed savings and investments provider, has launched its sixth Guaranteed Equity Bond (GEB), which offers a return linked to the performance of the FTSE 100 index. It goes on sale for a limited period from 14 October to 24 November 2003, although may close earlier if fully subscribed. Issue 6 of NS&I's GEB offers investors a gross return equivalent to 95% of any growth in the FTSE 100 index over the five year term, with no upper limit or cap on this return - otherwise known as a 'participation' Bond. This is this first time NS&I has offered a 'participation' GEB - its previous five Bonds offered 'capped' returns of between 60% and 70%1 - and by offering a 'participation' GEB, NS&I is offering customers the opportunity to invest in a different type of GEB, which will also provide the unrivalled security of HM Treasury backing. While this sixth Issue is on sale, NS&I will not have any other GEBs available. A 'participation' GEB has no maximum limit on returns but pays a proportion of the growth in an index, while a 'capped' GEB means investors will receive all of the growth in an index up to a certain limit. Demand has been high for NS&I's previous issues - the first five sold over £300 million since Issue one was launched just 18 months ago - and more than 22,000 people have asked to be given advance information about Issue 6. NS&I Guaranteed Equity Bond key features
Gill Cattanach, National Savings and Investments commercial director, said: "Our new Guaranteed Equity Bond represents another excellent opportunity for customers to invest in a stock market linked product without any risk to their capital. "This Bond provides the best of both worlds by giving customers a return of 95% of any growth in the FTSE with no upper limit while offering the reassurance that, should the market fall, they will always get their capital back. "The decision by National Savings and Investments to offer a 'participation' GEB where the upside potential is unlimited shows that we are committed to providing a wider choice of product for our customers and that we have the flexibility and capacity to react to the marketplace." Independent backing NS&I's new GEB is receiving favourable support from independent financial advisers. Karen Ritchie, of Cambridgeshire-based Finance 4 Women, says: "The fact that NS&I's guaranteed equity bond offers a true 100% capital guarantee makes it a completely safe investment for the more cautiously-minded, and the 95% participation rate is certainly among the most competitive in the marketplace right now. "At the present time, of all the guaranteed equity bonds currently on the market, this is the only one I would recommend." Stock market growth After three years of falls the FTSE 100 index has risen from its five-year low of 3287.00 on 12 March 2003 and, to date, has recovered by 979 points2. Why have investors purchased NS&I Guaranteed Equity Bonds? In just 18 months, NS&I has become an established provider for these investments. Customer research has found that the main reasons people invest in the NS&I Guaranteed Equity Bond are:
How to buy NS&I's Guaranteed Equity Bond As well as picking up an application from Post Office Branches or downloading one online at www.nsandi.com, investors can apply (using a debit card) for the Bond 24 hours a day, seven days a week by calling 0500 500 000. ENDS Notes to Editors
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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