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Media centre /
Press releaseNEW GUARANTEED EQUITY BOND FROM NS&I10 March 2008OFFERS GROWTH POTENTIAL LINKED TO THE FTSE 100 INDEX
NS&I (National Savings and Investments) is to launch a new issue of its Guaranteed Equity Bond on 12 March 2008. This will offer a gross return that matches FTSE 100 Index growth, up to a maximum return of 70%, over the five year term of the Bond, without any risk to investors’ capital. For example, if the FTSE rose by 20% over the five-year term, £10,000 invested would earn a gross return of £2,000 (customer receives £12,000 in total) at the end of the five years. If the FTSE rose by 120% over the five years, £10,000 invested would earn a gross return of £7,000 (customer receives £17,000 in total) as a return of up to 70% of FTSE index growth is offered on NS&I’s Issue 14 of the Guaranteed Equity Bond. If the FTSE falls or fails to rise over the term, investors’ initial investment is returned in full as NS&I is backed by HM Treasury. While NS&I Guaranteed Equity Bonds are linked to the FTSE, NS&I does not invest the money in equities, so investments in the Guaranteed Equity Bond will not be eligible for dividends. Therefore investors may not get as high a return as they might through investing directly in the stock market. However, unlike investments in the stock market, any money invested is 100% secure. Investors can now invest in the Guaranteed Equity Bond (GEB) through a SIPP (self-invested personal pension). Provided the total investment in the SIPP does not exceed the lifetime limit the returns will be free of UK income tax. Investors should contact their SIPP provider for further details. The launch of GEB 14 coincides with the maturity of NS&I’s fourth issue of the five year Guaranteed Equity Bond on 9 April 2008. This fourth issue went on sale in March 2003, with a maximum return of 60% gross over five years and a FTSE start level of 3847.8. NS&I will be writing to investors this month to remind them of the maturity of their investment and the launch of the new Guaranteed Equity Bond. NS&I GEB offer period Issue 14 of the GEB goes on sale for a limited period from 12 March to 29 April 2008. It may close earlier if fully subscribed so investors are encouraged to invest early, particularly because their investment will earn interest at 4.75% p.a. gross until the Bond’s investment term starts on 14 May. This interest will be paid when the Bond matures. The minimum investment level for this GEB remains at £1,000 and the maximum investment is £1 million per person or £2 million for a joint investment. NS&I Guaranteed Equity Bond key features How to buy NS&I’s Guaranteed Equity Bond ENDS Notes to Editors 1. NS&I has case studies of customers who have previously invested in NS&I’s Guaranteed Equity Bonds available on request
Media team
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Customers
wishing to contact NS&I can find details here.
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