Jan 23 2006
Bradford & Bingley today launched a new bond combining good interest rates with the growth potential of the stock market.
The "best of breed" 50/50 FTSE bond splits the customer's investment in half.
Half the capital is invested in a one-year Fixed Term Bond that pays 7.5 per cent gross per annum with the other half put into a five-year Guaranteed Equity Bond that pays 100 per cent of the growth of the FTSE 100 index.
Should the market suffer a downturn, the capital investment is returned.
Although the bond is semi-based on the stock market, the bond only tracks the market's performance, meaning there is no investment.
Stephen Potter, head of savings at Bradford & Bingley, said: "In the current low interest rate environment, investors looking for the potential for a higher return will be rewarded by a great short-term fixed rate and any growth in the stock market over the longer term, whilst not sacrificing the security of their capital."
The minimum investment for the scheme is £1,000, up to £250,000, with no additions or withdrawals allowed during the term.
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