Combination bond 'investors cannot lose' with

Monday, October 24, 2005

A new investment opportunity has been announced, combining the benefits of both the stock market and a bond.

The scheme by Bradford and Bingley, the Guaranteed Combi Bond, combines a competitive interest rate bond with a bond that is affected by the growth of the FTSE 100.

Half of the investment goes into a one-year bond with a fixed interest rate of 7.00 per cent gross per annum, and the other half goes into a five-year guaranteed equity bond which pays 110 per cent of the growth of the FTSE 100 or returns the capital invested if the market declines.

"This is an excellent opportunity for those who not only want a great interest rate but also want to benefit from the growth potential of the stock market – without any of the risks," said Steve Potter, head of savings at Bradford and Bingley.

He added: "Investors simply cannot lose."

An investment can be any amount from £1,000 to £250,000 but the offer, as with many bond opportunities, is for a limited period.

The combination of the two bond types into a single combined bond follows the recent bond offerings from the Abbey and Newcastle Building Society in what seems to be a popular trend.
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