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Media centre /
Press releaseNEW GUARANTEED EQUITY BOND FROM NS&I30 June 2009OFFERS GROWTH POTENTIAL LINKED TO THE FTSE 100 INDEX
NS&I (National Savings and Investments) is launching a new issue of its Guaranteed Equity Bond (GEB) on 30 June 2009. This will offer a potential return that is linked to the FTSE 100 index – up to a maximum of 40% over the 5-year term – without any risk to investors’ capital. For example, if the averaged index end level is 20% greater than the averaged index start level at the end of the 5-year term, £10,000 invested would earn a gross return of £2,000 at the end of the term. If the index end level was 45% greater than the index start level at the end of the term, £10,000 invested would earn a gross return of £4,000, because the maximum return is 40%. The returns are calculated by comparing the start level of the FTSE 100 index (averaged over the first five days of the investment term) to the end level (averaged over the final six months). While the returns paid on NS&I Guaranteed Equity Bonds are linked to the FTSE 100 index, NS&I does not invest the money in equities, so investments in the Guaranteed Equity Bond will not be eligible for dividends. Therefore investors may not get as high a return as they might through investing directly in the stock market. However, unlike investments in the stock market, any money invested is guaranteed 100% secure, backed by HM Treasury. If the FTSE 100 index end level is the same as or lower than the start level, investors’ initial capital would be returned in full. The launch of the 18th Issue coincides with the maturity of Issue 8 of NS&I’s 5-year Guaranteed Equity Bond on 28 July 2009. Issue 8 went on sale in June 2004, offering a potential return of 75% of FTSE 100 index growth over five years or a minimum return of 15%, with an index start level of 4406.70. NS&I has written to investors this month to inform them that their Bond is about to mature. NS&I’s previous Guaranteed Equity Bond issue , Issue 17, which went on sale on 21 April 2009, closed two weeks early on 18 May as a result of customer demand. NS&I Guaranteed Equity Bond offer period Issue 18 of the Guaranteed Equity Bond goes on sale for a limited period from 30 June to 11 August 2009. It may close earlier if fully subscribed so investors are encouraged to invest early. Investments will earn interest at 0.50% pa gross until the Bond’s investment term starts on 26 August 2009. This interest will be paid when the Bond matures. The minimum investment level for this Guaranteed Equity Bond remains at £1,000 and the maximum investment is £1 million per person or £2 million for a joint investment. NS&I Guaranteed Equity Bond key features
How to buy NS&I’s Guaranteed Equity Bond Investors can apply online at www.nsandi.com, by phone with a debit card on 0500 500 000* or by post using an application form which can be requested by phone or downloaded from NS&I’s website at www.nsandi.com ENDS Notes to Editors 1. Inflation may reduce the true value of the original capital over time. 2. NS&I has almost 27 million customers and over £94 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings, Guaranteed Equity Bonds and Children’s Bonus Bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury. 3. Further information and digital images are available from the NS&I Media Team. 4. Subscribe to the NS&I RSS newsfeed. Simply copy and paste this link www.nsandi.com/mediacentre.xml into your RSS reader to receive regular news alerts from NS&I. *This number is for sales only (UK customer service team) and is a free phone number from a BT landline. Charges from other service providers will vary. For your security, and to maintain the highest levels of service, calls may be recorded.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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