New Saga 1 Year Guaranteed Equity Bond offering a potential return of 8.20% Gross/AER*
New Saga 3 Year Guaranteed Equity Bond offering a potential return of 26.20% Gross/8.06% AER*
New Saga 5 Year Guaranteed Equity Bond offering a potential return of 49.06% Gross/8.31% AER*
Saga Personal Finance has introduced three new savings products with the launch of the Saga 1, 3 and 5 Year Guaranteed Equity Bonds. These new products further widen the portfolio of savings options available through Saga.
The Saga Guaranteed Equity Bonds are aimed at investors who do not require access to their money during the term of the investment and those looking for exposure to potential increases in the FTSE 100 Index, though not by putting their capital at risk.
The bonds are linked to the performance of the FTSE 100 Index and offer a potential return of between 8.06% and 8.31% AER* providing the average of the FTSE 100 Index taken at the start and end of the applicable term** has not fallen. If the FTSE 100 Index does fall the customer can rest assured that their capital is protected.
Andrew Goodsell, Chief Executive, Saga Group Ltd commented: "At Saga we understand that our customers like a choice and never more so than when making important decisions about where to place their hard-earned savings. The 1, 3 and 5 Year Guaranteed Equity Bonds expand our substantial portfolio of financial products to suit all types of investor."
Saga already offers a wide selection of saving products. These include the Saga Online Top 5 Tracker Savings Account, Saga Postal Tracker ISA, Saga Secure Savings Account and Saga Fixed Rate Savings Accounts. This allows Saga Personal Finance to offer saving solutions to meet the differing needs of most over 50s savers.
For further information about any Saga Personal Finance saving products customers can call 0845 850 0664 or visit www.saga.co.uk/money-shop/savings.
* Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
GEB product details
** To assess the FTSE 100 Index performance over the period of your investment, we use a special averaging feature at the start and maturity of the bond. This averaging may restrict or improve the return received. Averaging is designed to protect the investment not just from any uncharacteristic high FTSE 100 Index fixing at the start date of the bond, but also from a low FTSE 100 Index fixing at the maturity date (1 Year = 30 October 2009, 3 Year = 31 October 2011, 5 Year = 31 October 2013). However, the investment return will be restricted if the opposite were true. The aim is to smooth the performance of the FTSE 100 Index over time.
Things to know :
* The deposit taker for this account is Birmingham Midshires, a division of Bank of Scotland plc.
* Basic tax will be deducted automatically from the interest paid to the investor.
* Customers can invest anything from 500 to 1 million.
* The term runs from the end of the offer period (1 Year = 31 October 2008, 3 Year = 31 October 2008, 5 Year = 31 October 2008) until the date of maturity.
* The cost of capital protection is included in the returns offered.
* Where the account is held in trust or on an enduring Power of Attorney, it is the person operating the account who will need to set up password security.
* We'll take care of the basic rate tax liability for the customer. A higher rate taxpayer may have a further amount to pay. Currently Non-taxpayers can reclaim the tax paid on their behalf. Tax rules may change in the future
* To assess the FTSE 100 Index performance over the period of the investment, we use a special averaging feature at the start and maturity of the bond. For further information please refer to the product brochures available by calling 0845 603 8784.
* Customers may choose to close or make a part withdrawal from the bond and we will do this without notice. If they choose to close or make a part withdrawal, a 5.00% charge on the amount withdrawn will apply.
* After the Maturity Date, in the absence of any written instruction to the contrary being received, the proceeds will be transferred into a Saga Instant Access account.
* Funds that are invested in the account, will receive an interest rate equal to our Saga Telephone Savings Account, which is currently 5.75% Gross/AER, from the investment date until the issue date. This interest will then be added to the balance invested in the account on the issue date.
The information relating to the Saga 1, 3 and 5 Year Guaranteed Equity Bonds is not directed at anyone other than UK residents aged 50 or over and applications from others cannot be accepted. The information that relates to the Saga 1, 3 and 5 Year Guaranteed Equity Bonds may not satisfy the laws of any other country.
For further press information please contact the Saga Press Office on: 01303 771529.