New NS&I Guaranteed Equity Bond available

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New NS&I Guaranteed Equity Bond available

Tue 2nd May 2006

A new NS&I Guaranteed Equity Bond has been launched, which offers a return equal to 112 per cent of any growth in the FTSE 100 index over five years, without any risk to invested capital.

The offer can, for the first time, be invested in through a self-invested personal pension (Sipp), with returns free of income tax provided the amount put into the Sipp does not exceed the lifetime limit in 2011-12.

There is no upper limit or cap on the potential returns offered through this new product.

NS&I claims that its offer is one of the most competitive on the market and the only package of its type with a sovereign guarantee.

Trevor Bayley, chief executive of NS&I, said: "This new Guaranteed Equity Bond…is a great opportunity for any investor looking for a cash deposit where the returns are linked to the performance of the FTSE but will also beat that performance by a further 12 per cent, as long as the FTSE rises over five years."

The NS&I Guaranteed Equity Bond will be available from May 3rd to June 27th and during this offer period customers' investments will earn four per cent annual interest, which will be paid on maturity.

A minimum investment of £1,000 is required and a maximum of £1 million is allowed for single customers.