Press releases

NEW STRUCTURED DEPOSIT OFFERS 4.85% MINIMUM RETURN AFTER SIX YEARS.

David Beard, Business Development Manager
David Beard
Head of Product Development

29 October 2012

David Beard, Business Development Manager
David Beard
Head of Product Development

The Legal & General 6 Year Growth Deposit Bond 17 has opened for investment for eight weeks from Monday 29 October and closes on Friday 21 December 2012.

The Bond offers investors a minimum return of 4.85% gross (0.79% AER) or if greater, 100% of the growth in the FTSE 100 Index up to a maximum value of 40% gross (5.77% AER) of the original investment.

The Bond will also return their original investment if held until the end of the fixed six year term on 15 January 2019. 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.

David Beard, Business Development Manager said; “As a deposit based product, investors in the Legal & General 6 Year Growth Deposit Bond 17 should receive a positive return whatever happens to the FTSE 100 Index. For ‘cautious investors’ this offers the opportunity to benefit from FTSE 100 Index linked returns without risk to their capital at the end of the six year term.”

The minimum investment is £500 and the Bond is available as a deposit plan (for individuals, pension trustees, charities and corporate applications). Investors can also use their cash ISA allowance, where available, and invest up to £5,640 for the 2012/2013 tax year.

There is no maximum for cash ISA transfers, or if investing in a deposit plan.

The last date for ISA transfers is 7 December to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 21 December 2012.

Commission is 3% of the sum invested. Full details for this product are available on Legal & General’s dedicated adviser website www.landgstructuredproducts.com.

Advisers can also contact Solutions First on 0370 050 0614 (Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  

Or email 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 Tuesday 15 January 2013 and the end of the fixed term is 15 January 2019. The maturity payment date, when Legal & General receives monies from the deposit taker, is 17 January 2019.

2. This plan is not suitable for customers who may need to access their money before the end of the six year term or who may be seeking a definite return.

3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on 15 January 2013 and the average level of the Index in the last 12 months of the investment, commencing 15 January 2018 to 15 January 2019.

4. The average level is based on the closing level of the Index on the 15th of each month during the averaging period (13 observations).

5. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

6. The gross rate is the rate of interest that would be payable before the deduction of income tax.  This is the rate we pay on a cash ISA.

7. The 6 Year Growth Deposit Bond 17 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.

8. The Deposit taker is Cater Allen Limited.

9. The return of the original investment and any applicable return is dependent on Cater Allen paying this money to us. This might not happen if Cater Allen default or become insolvent and unable to repay us this money. If they don't repay us, the investor could lose some or all of their original investment. Cater Allen is a member of the Financial Services Compensation Scheme, which covers the first £85,000 each customer holds with each bank or building society.

10. 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 account will be paid net of UK income tax at the basic rate (currently 20%). Non tax payers can reclaim this tax. Higher and additional rate tax payers 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.

11. This investment does not invest directly into the companies that make up the FTSE 100 Index so no dividend income is received.


For more information please contact:

Mike Connolly

Mike Connolly

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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