Skipton Extra Security Growth Bond unveiled

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Skipton Extra Security Growth Bond unveiled

Tue 16th May 2006

A Skipton Extra Security Growth Bond has been introduced to the public, which will invest in all areas of the market with a full capital guarantee.

With investment levels allowed between £3,000 and £250,000, the bond will separate customers' investment into two separate channels.

One third of the amount put into the bond will go into a one-year fixed-rate option, which will have a rate of six per cent until July 31st 2007, at which point customers' returns will be made available to them.

The other two thirds of customers' invested funds will go into a five-year index-linked bond, which will pay the higher of two options – 80 per cent of any positive growth in the FTSE 100 Index or 100 per cent of the growth in Retail Price Index (RPI).

An initial reading of the FTSE will be made on July 31st 2006 and the RPI reading will be based on the published level for this month.

The final reading of the FTSE will be the average amount of all closing levels on the 27th of every month between July 2010 and July 2011, while the final reading of the RPI will be made from the average published levels between May 2010 and May 2011.

Full repayment of capital is guaranteed in the FTSE-linked half of the Skipton Extra Security Growth Bond and money will be made available at midnight on July 29th 2011.

Jennifer Holloway, head of media relations at Skipton, said: "The fact that capital is guaranteed means savers can feel secure in the knowledge that their initial investment is safe and as the One-Year Fixed-Rate Bond offers a very attractive six per cent, customers have a cast-iron assurance of gaining a positive return on their money."