Nationwide has introduced a new savings bond that could give a 50 per cent return on investments over six years if the stock markets perform well.
The Legal and General Stock Market Linked Savings Bond guarantees at least seven per cent gross interest, a 1.13 per cent annual equivalent rate (AER) on investments.
However it will return 50 per cent (6.99 per cent AER) if the FTSE 100 Index, EuroSTOXX 50 Index and S&P 500 Index achieve 100 per cent growth.
Robin Bailey, Nationwide's director for investments and savings, said: "If you want to see potentially higher returns on your savings, but you do not like the idea of losing your capital if stock markets fall, then the Stock Market Linked Savings Bond could be the right account for you."
This first issue of the savings bond is available both as a six-year deposit plan, with a minimum investment of £3,000, or as a six-year cash ISA, with an investment of £3,600 (or £5,100 for anyone over the age of 50 by April 5th 2010).
The Post Office unveiled its latest savings bonds earlier this month, with the three-year account offering 4.4 per cent gross interest AER on deposits of up to £1 million.
New stock market linked savings bond from Nationwide
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New stock market linked savings bond from Nationwide
Thu, 28 Jan 2010
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