Birmingham Midshires Three-Year Trigger Account started

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Birmingham Midshires Three-Year Trigger Account started

Thu 6th Apr 2006

A new Birmingham Midshires Three-Year Trigger Account is among the changes announced by the savings provider this week.

Linked to the performance of the FTSE 100 index, the guaranteed equity bond (GEB) offers a return of 5.97 per cent annual equivalent rate (AER) if the index doesn't fall during the three-year term.

Should there be a fall in the FTSE 100, the original deposit invested in the Birmingham Midshires Three-Year Trigger Account will still be returned to the bond holder, as the capital is linked to the index and not invested in it.

The head of savings products at Birmingham Midshires, Richard Brown, describes this GEB as "the ideal scenario".

He says the guaranteed return of capital, "coupled with the benefits available from the high potential growth of the FTSE 100, without direct investment in it" will ensure that investors benefit from choosing this product.

The provider also launched a five-year 50-50 GEB this week, which splits the invested fund in two. Half of the capital is then invested in a one-year fixed-rate bond, while the other half is placed in a tracker bond that is linked to the FTSE 100.

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