NS&I offers new guaranteed Equity Bond
on: April 22, 2009, 4:56 am
Author: National Savings
(National Savings and Investments) has announced the launch of
a new issue of its Guaranteed Equity Bond (GEB)
Equity Bond will offer a gross return that matches any growth
in the FTSE 100 index over a 5-year term, up to a maximum of 35%,
without any risk to investors' capital. All NS&I GEBs are
sold in limited issues, so investors are advised to move quickly
if they want to secure a guaranteed
investment return through these bonds.
While the returns paid on 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 guaranteed 100% secure, backed by HM Treasury. NS&I are
committed to banking and offer a great range of equity
bonds including NS&I
Guaranteed Growth Bonds.
launch of the 17th Issue coincides with the maturity of Issue
7 of NS&I's 5-year Guaranteed Equity Bond on 19 May 2009.
Issue 7 went on sale in April 2004, offering a potential return
of 110% of any FTSE growth over five years and a FTSE start level
of 4435.80. NS&I has written to investors this month to inform
them that their Bond is about to mature. As a consequence of market
conditions and the falls in the FTSE 100, savers will receive
their initial investment in Issue 7 of the Guaranteed Equity Bond
back in full - in line with NS&I's commitment to a 100% guarantee
on the capital originally invested. They will also receive interest
earned during the offer period - but with no further return.
NS&I Guaranteed Equity Bond offer period
Issue 17 of the Guaranteed Equity Bond goes on sale for a limited
period from 21 April to 1 June 2009. It may close earlier if fully
subscribed so investors are encouraged to invest early. Investments
will earn interest at 0.50% pa gross until the Bond's investment
term starts on 16 June 2009. This interest will be paid when the
Bond matures. The minimum investment level for this Guaranteed
Equity Bond remains at £1,000 and the maximum investment
is £1 million per person or £2 million for a joint
Notes to Editors
1. Inflation may reduce the true value of the original capital
2. NS&I has 27 million customers and over £94 billion
invested. It is best known for Premium Bonds, but also offers
Inflation-Beating Savings, Guaranteed Equity Bonds and Children's
Bonus Bonds in its range. All products offer 100% security, because
NS&I is backed by HM Treasury.
3. Further information and digital images are available from the
NS&I Media Team.
NS&I is one of the UK's largest financial providers with 27
million customers and over £94 billion invested. It is best
known for Premium Bonds, but also offers inflation-beating savings
account guaranteed equity bonds, savings bonds easy access accounts
and children's bonus bonds in its range. All products offer 100%
security, because NS&I is backed by HM Treasury.
For further information on the new NS&I Guaranteed
Bond, please contact:
National Savings and Investments
375 Kensington High Street
T: 020 7348 9301
F: 020 7348 9432