Feb 23 2006
Nationwide is to launch a new allowance of its Guaranteed Equity Bond (GEB) from February 27th, with growth linked to four major stock market indices.
The building society said that the bond guarantees to return the initial investment, plus ten per cent growth, or up to 50 per cent of any growth the value of the indices, whichever is greater, over the five-year term.
Growth will be linked to the FTSE 100, Nikkei 225 and DJ EuroSTOXX 50 indices.
In addition, Nationwide is offering an early investor bonus to customers who invest in the new GEB, with progressively decreasing financial incentives for investment the longer the bond is valid.
For investments made between February 27th and March 11th 2006 customers will receive 0.4 per cent of any investment, 0.3 per cent of any investment made between March 13th and March 25th 2006 and 0.2 per cent of any investment made between March 27th and April 8th 2006.
Clive Parkinson, managing director of Nationwide Investments, said: "A Guaranteed Equity Bond is ideal for those people who wish to invest in the stock market but have concerns about the risks involved.
"The Nationwide GEB not only offers peace of mind to the investor by providing a capital guarantee but also guarantees a minimum return of ten per cent. Therefore the return is always more than the original amount invested."
