25 per cent guaranteed return from Alliance & Leicester

Alliance & Leicester International has launched a new Capital Guaranteed Growth Bond, specifically designed for medium-term investors.

14:44 27 May 2004

Alliance & Leicester International has launched a new Capital Guaranteed Growth Bond, specifically designed for medium-term investors.

The offshore savings bank, says the product is ideal for those looking for a guaranteed minimum growth without any risk to their capital. Yet, at the same time it has the potential to earn more if there is a sustained growth in the UK Stock market.

The managing director of Alliance & Leicester International, Simon Hull, said: "This new addition to our product range allows us to give customers peace of mind but at the same time, the opportunity to benefit from any potential growth in the stock market, whilst protecting their initial investment."

He added "It is specifically aimed at those prepared to invest for the medium-term, but who aren't looking for risk."

The Capital Guaranteed Growth Bond gives a fixed minimum return on investments over its five and a half year term, together with a capital guarantee.

Investors are guaranteed to receive their money back at the end of the term plus whichever is greater: 70 per cent of the growth in the FTSE 100 index, or 25 per cent gross (equivalent to 4.14 per cent AER).

Additionally, until July 9th, any deposits will receive a fixed rate of interest of five per cent gross per annum. This is added to the capital before the start of the bond on July 23rd.

The minimum investment on this lump sum deposit account is 5,000.