Press release

Saga Personal Finance launches two new savings products - RATES NO LONGER AVAILABLE

Monday 17 March 2008

  • New Saga Telephone Savings Account with 6.00% Gross/AER rate
  • Launch of new Saga One Year 8.00% Guaranteed Equity Bond with the potential for 8.00% AER/gross return
  • Over 50s hold 70% of all UK savings and investments
  • Customer information available on 0845 850 0664 or saga.co.uk/savings

Saga Personal Finance is today introducing two new saving products with the launch of the Saga One Year 8.00% Guaranteed Equity Bond and the new Saga Telephone Savings Account. These new products further widen the portfolio of savings products available through Saga.

The new Saga Telephone Savings Account has been launched for those customers that want quick access to their savings via the telephone and wish to always speak to a real person in the UK. The account not only offers no automated menu systems and UK only call centres but a high rate of 6.00% Gross/AER****. The account offers unlimited withdrawals and no notice period requirement when making withdrawals.

The Saga One Year Guaranteed Equity Bond is aimed at investors who do not require access to their money during the term of the investment, and are looking for the exposure to potential increases in the FTSE 100 with the security of knowing their capital is not at any risk. The bond is linked to the performance of the FTSE 100 and offers a potential return of 8.00% gross/AER* providing the average of the FTSE 100 Index has not fallen at the end of the one year term**. If the FTSE 100 does fall during the year the customer can rest assured that their capital is protected and that they will receive 100% of the original capital investment back.

Andrew Goodsell, Chief Executive, Saga Group Ltd commented: "Recent research commissioned by Saga shows that over 50s represent 45% of all savers yet they hold 70% of all savings and investments in the UK***. At Saga we understand that our customer's like a choice and never more so than when making important decisions about where to place their hard-earned savings."

Saga already offers a wide selection of saving products. These include the Saga Online Saving Account, Saga Secure ISA , Saga Secure Savings Account and fixed rate bonds. This allows Saga Personal Finance to offer saving solutions to meet the differing needs of most over 50s savers.

For further information about any of Saga Personal Finance saving products customers can call 0845 850 0664 or visit saga.co.uk/savings.

-ENDS-

* 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 (30 April 2009), 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.

We take the daily average of the FTSE 100 Index for 14 May to 21 May 2008 and then compare this to the daily average for 14 April to 28 April 2009 to calculate the FTSE 100 increase. If the average for the 14 April to 28 April 2009 is greater or equal to the average taken during 14 May to 21 May 2008 we will pay the promised return.

*** Source: GfK NOP Financial Research Survey (FRS) 12 months ending December 2007".

* 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 5 million.

* The term runs from the end of the offer period (30 April 2008) until the date of maturity (30 April 2009).

* The cost of capital protection is included in the returns offered.

* To assess the FTSE 100 Index performance over the period of the investment, a special averaging feature is used at the start and maturity of the bond.

* 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. Non-taxpayers can reclaim the tax paid on their behalf simply by contacting their Financial Adviser. 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 being received, the proceeds will be transferred into a Saga account being offered, selected at Saga's discretion.

* If funds are invested in the account, we will pay an interest rate (equal to our Saga Secure Savings Account which is currently 5.00% Gross) from the investment date until the 30th April, the issue date. This interest will then be added to the balance invested in the account of the issue date.

The information relating to the Saga 1 Year 8.00% Guaranteed Equity Bond is not directed at anyone other than UK residents and applications from others cannot be accepted. The information that relates to the Saga 1 Year Guaranteed Equity Bond may not satisfy the laws of any other country.

Saga Telephone Savings Account product details

* 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.

**** Includes 0.75% bonus for first year on annual interest option.

* Annual variable interest is 6.00% AER

* Interest can be paid annually or monthly

* Interest can be paid back to the account or to a linked account

* Minimum opening balance is 1000

* Maximum balance is 5m

* Unlimited penalty-free deposits/withdrawals via telephone

* One external account must be linked to the account for all transfers

* First year bonus of 0.75% on annual interest option or 0.71% on monthly interest option

* Statements will be sent out annually

If the balance falls below 1000 the account reverts to the post bonus rate.

For further press information please contact the Saga Press Office on: 01303 771529.

GET IN TOUCH

  •  

    Press Office

    01303 771529