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Media centre /
Press releaseANOTHER CHANCE TO BEAT THE FTSE WITH NEW GUARANTEED EQUITY BOND FROM NS&I 06 September 2004Investors are being given a second opportunity to see their savings outperform the FTSE 100 index with the launch of another Guaranteed Equity Bond from National Savings and Investments (NS&I). This new GEB offers a return equal to 105% of any growth in the FTSE 100 index over the five-year term of the Bond, without any risk to investors’ capital and is backed by HM Treasury. Offer period Issue 9 of the GEB goes on sale for a limited period of eight weeks from 15 September to 9 November 2004. It may close earlier if fully subscribed, so investors are encouraged to buy early, particularly because their investment will earn interest at 4.00% p.a. gross during the eight week offer period, paid when the Bond matures. Investment level The investment level for this GEB remains at £1,000 – as with the previous two offers – consistent with NS&I’s approach to make this offer more accessible to a wider number of people. The minimum for the previous six GEBs was £2,000. How to buy NS&I’s Guaranteed Equity Bond Investors can apply by phone with a debit card on 0500 500 000 or by post using an application form which can be downloaded from NS&I’s website at www.nsandi.com. NS&I Guaranteed Equity Bond application forms are also available at the Post Office. Return This new GEB offers a gross return equivalent to 105% of any growth in the FTSE 100 index over the five-year term, with no upper limit or cap on the return. The 105% figure means the investment will earn a return equivalent to all of the growth in the FTSE 100 index over the five-year term, plus an extra 5% of FTSE growth on top. For example, if the FTSE 100 index rose by 40% over the five-year term, £10,000 invested would earn a gross return of £4,200 (customer receives £14,200) at the end of the five years – i.e. 42%. If the FTSE rose by 60% over five years, £10,000 would earn £6,300 (customer receives £16,300, i.e. 63%). Even if the FTSE 100 index falls or fails to rise over the term, investors get their initial investment back in full. Demand has been high for NS&I’s previous issues – the first eight have sold over £600 million since Issue one was launched in March 2002 – and more than 23,000 people have asked to be given advance information about Issue 9. NS&I’s last GEB (Issue 8) was on sale between 2 June and 27 July 2004. NS&I Guaranteed Equity Bond key features
Gill Cattanach, National Savings and Investments marketing director, said: “This is our second guaranteed equity bond which gives customers a chance to invest in a stock market linked product where the returns will beat the performance of the FTSE 100 index “Our first FTSE 100-beating guaranteed equity bond, available earlier this year, was hugely popular and there is a lot of customer demand for another, similar offer. We are in a position to offer a competitive product for customers, guaranteeing 105% of any growth in the FTSE 100 over the five years of the investment. “What makes this offer unique among all others is that we provide a 100% capital guarantee, backed by HM Treasury, which provides the reassurance that, even if the FTSE falls, you will get all of your original investment back.” Why have investors purchased NS&I Guaranteed Equity Bonds? NS&I has become an established provider of these investments. Recent customer research has found that the main reasons people invest in the NS&I Guaranteed Equity Bond have stayed consistent since the first Issue in March 2002:
ENDS Notes to Editors
NS&I Media Team
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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