Nationwide launches new guaranteed equity bond

Wednesday, August 3, 2005

Nationwide has announced that it will launch a new guaranteed equity bond (GEB) on Monday 8 August, with growth linked to the FTSE 100 index.

Investors will be guaranteed the return of the initial amount invested, as well as 80 per cent of any FTSE 100 growth at the end of the five-year term.

This is the equivalent of 100 per cent of growth before tax for basic and higher rate tax -payers.

In addition, customers could receive an early investor bonus of 0.40 per cent for customers who opt for the product between the 8 August and 20 August.

Managing director of Nationwide investments, Clive Parkinson, said: "Guaranteed Equity Bonds are ideal for people who wish to invest in the stock market but have concerns about the risks involved.

"Potentially, investors could benefit from stock market growth whilst avoiding any risk of losing their original investment. Investors who open an account early will receive an early bonus of up to 0.40 per cent which will be added to the original investment, on the start date of 18 October."