Post Office launches five-year bond
Tuesday, 22 Apr 2008 16:40
The Post Office is launching a new five-year bond linked to the FTSE 100, but with guaranteed returns.
The Fiveyear Saver offers provides 5.5 per cent gross/AER on half the investment and the remaining 50 per cent will see returns linked to the FTSE 100.
Should the FTSE 100 fall the original investment is guaranteed.
Post Office director of savings and investments Richard Norman said: "With the current volatility of the stock market people are understandably wary about risking their hard-earned savings in direct investments, but they still want their money to be working as hard as it can for them.
"Our five year savings bond provides savers with the security they need now but still gives them the opportunity to make good returns in the future."
Investments range from £500 to £1 million with no additional investment or withdrawals allowed over the term. Interest is paid at the end of the five-year fixed term.