Nationwide unveils Protected Equity Bond

Monday, 01 March 2010 12:00

Nationwide has today begun offering a deposit-based plan providing returns linked to some of the world's leading stock markets.

The Protected Equity Bond (PEB) is designed to return a minimum 11 per cent gross at the end of six years, while there is potential for further market-linked growth of around 50 per cent of the original investment, subject to final-year averaging.

As the product does not involve direct investment in company shares or funds, balances are shielded from any negative stock market movement.

Robin Bailey, director of investments and savings at Nationwide, said that the protection offered by the bond will make it attractive to many.

"The PEB provides an alternative option for those who want to see potentially higher returns on their savings, but do not like the idea of losing their capital if stock markets fall," he stated.

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