Thursday 17th April 2008
Bank of Scotland International has launched 'Bond 26', its new 50:50 Five Year Sterling or US Dollar Capital Guaranteed Savings Bond.
'Bond 26' guarantees customers' initial capital investment is protected whilst giving the opportunity to benefit from the growth potential of the stock market. The minimum investment level is £10,000 for the Sterling account and $20,000 for the US Dollar account. The account is currently available with the closing date for applications on 14th July 2008.
Five Year Capital Guaranteed Savings 'Bond 26'
Under 'Bond 26', half of the capital is invested for just one year at a fixed rate of 8% p.a (6% for the US dollars). This is returned at maturity on 17th July 2009 to a nominated account.
The other half of the capital is linked to the performance of a 'basket' of indices over five years. The 'basket' is made up of the Swiss Market Index, Standard & Poor's 500 index and TOPIX.
At the end of the five years, customers in the 'Bond 26' Sterling will receive the remaining half of the capital, along with 60% of any average percentage rate increase of the 'basket' of indices. Customers in 'Bond 26' US Dollar will receive the remaining half of the capital, along with 35% of any average percentage rate increase of the 'basket' of indices*.
The start date for 'Bond 26' is 17th July 2008. The 8% p.a. one year fixed term on these accounts will mature on 17th July 2009. The five year fixed term will mature on 17th July 2013.
James Gairdner, managing director at Bank of Scotland International, says:
"Bond 26 enables customers to benefit from growth potential in these indices without actually investing in them ensuring their initial capital is protected with the added benefit of a guaranteed return over the first year."
Ends.
Editors' Notes
*The 'Average Level' or the percentage rate increase will be determined by taking the average level of each index respectively on 9th of each month, over the 13 months before the account's maturity date on 17th July 2013.
All applications received before 14th July 2008 will receive 0.06% below the Bank of England base rate until 16th July 2008 inclusive.
Bank of Scotland International offers a range of services to suit the needs of customers all over the globe. This includes everything from offshore banking and savings accounts, offshore mortgages and financial planning.
For further information about Bond 26 please visit www.bondtwentysix.com or call 01534 613514.
