Press releases

Launch of new 6 Year Growth Deposit Bond from Legal & General.

James Harrington - Head of Commercial Implementation, Platforms & Distribution
James Harrington
Head of Structured Solutions

04 January 2011

James Harrington - Head of Commercial Implementation, Platforms & Distribution
James Harrington
Head of Structured Solutions

Legal & General has kicked off the New Year with the fifth plan in its series of structured deposit bonds.

The 6 Year Growth Deposit Bond 5, is available to IFAs for a limited 8-week period from Tuesday 4 January to Friday 25 February 2011. 

The structured deposit offers savers an upside potential for capital growth of 200% of any growth in the FTSE 100 Index or a minimum of their original capital provided they remain invested for the 6 year fixed term. Payment will be made on 24 March 2017.

6 Year Growth Deposit Bond 5 is a six year fixed term deposit plan that offers investors 200% of any capital growth in the FTSE 100 Index, up to a maximum of 50% of their original investment, plus the return of their original investment at the maturity date, which is 17 March 2017.

Legal & General’s Head of Business Development, James Harrington said, "The continued volatility in investment markets, the return of the spectre of rising inflation coupled with continuing low interest rates are likely to increase demand for structured deposits among cautious investors. The returns on 6 Year Growth Deposit Bond 5 reflect the performance of the FTSE 100 Index, which should prove extremely attractive for many customers who are seeking a potential return that exceeds the rates they could achieve by leaving their money in a traditional deposit account.  In addition our structured deposit is designed to minimise risk and, if held in a cash ISA, provide a tax efficient shelter for any growth.”

The minimum investment is £500 and the bond is available as a deposit plan (for individuals, pension trustees, charities and corporate applications) and for cash ISA transfers for which there is no maximum. 

It is also available as a cash ISA for the 2010/2011 tax year for which the maximum investment is £5,100 (the closing date for ISA transfer applications is 11 February to allow time for completion of the transfer before the offer close date).

Commission is 3 per cent of the sum invested. Full details of the 6 Year Growth Deposit Bond 5 are available on the Legal & General dedicated adviser website, www.landgstructuredproducts.com.

Advisers can also contact Adviser Direct on 0845 273 0008 (Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  Or e-mail structured.team@landg.com

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

  1. The contract start date is 17 March 2011 and the end of the fixed term is 17 March 2017.
  2. This plan is not suitable for customers who may need to access their money before the six-year maturity or who may be seeking a definite return.
  3. The growth of the index will be measured using the initial level of the index at close of business on 17 March 2011 and the average level of the Fund in the last 12 months of the investment, commencing 17 March 2016 to 17 March 2017.
  4. The average level is based on the closing level of the index on the 12th of each month during the averaging period (13 observations).
  5. 6 Year Growth Deposit Bond 5 is designed to return the original investment at the end of the fixed term. If investors take out some or all of their money before the end of the fixed term, they may get back less than they originally invested.
  6. Taxation - as this is a deposit investment any growth received is treated as interest. The cash ISA (and an ISA transfer) is a tax-free investment. Any growth received through the deposit plan will be paid net of UK income tax at the basic rate (currently 20%). Non-taxpayers can reclaim this tax. Higher and additional rate taxpayers will have further tax to pay. SIPP, SSAS, charity or company applicants can be paid without the deduction of income tax but only where sufficient documentary evidence is provided.
  7. The Deposit taker is Cater Allen Limited.
  8. This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.
  9. The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 30 June 2010, we were responsible for investing £331 billion worldwide on behalf of investors, policyholders and shareholders.  We also had over 6.9 million customers in the UK for our life assurance, pensions, investments and general insurance plans.

For more information please contact:

Mike Connolly

Mike Connolly
PR Manager Savings

t: +44 (0) 1737 375365
m: +44 (0) 7802 503917
e: mike.j.connolly@landg.com


About Legal & General

Legal & General (Portfolio Management Services) Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.


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