23 June 2008
Online bank Egg has announced the launch of a new, three-year guaranteed equity bond which promises a 26 per cent return in the event of any growth on the FTSE 100 over the term.
The Egg Guaranteed Equity Bond offers will reward savers if the performance of the UK's top 100 listed companies is positive over the next three years.
Even if the stock market falls from its start level after the three years, investors have no risk of losing capital, providing the bond is held for the full investment term.
Investments can be from £1,000 to £1,000,000 and the capital is protected as long as the bond is held until the maturity date.
The offer is available to all customers with, or opening, an Egg Savings Account until 20 July.
Egg, head of investments, Jonathan Gains said: "Given current economic uncertainty and rising prices and inflation, a potential return of 26 per cent over the full term plus the addition of capital protection mean will appeal to investors who are cautious but looking for a potentially higher return than most deposit accounts can offer."
For customers to benefit from the 26 per cent return, the stock market must rise by any amount above the bond's starting level.
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