Capital protection with L&G

Legal & General has announced the launch of Growth Investment Plan Plus, the latest product in its series of stockmarket linked capital protected investment plans.

The latest offer will provide investors with 160% of any capital growth in the FTSE 100 Index over its 6 year term (maturing on October 24th 2013) plus 100% capital protection (at maturity). Worth noting is that the latter would not be guaranteed in the unlikely event of an institution - where the money is invested - subsequently defaulting. The offer period for the bond runs for 8 weeks through October 19th.

In addition, the plan includes an early payment feature (sometimes referred to as a 'kick out' feature), which means that if the Footsie grows strongly the investment could close early. The early payment feature (25%) will be activated if the FTSE 100 Index has grown by 15% or more at the third anniversary. If the early payment feature is activated, the investment will close and there is no option for it to continue.

Investment is available as a maxi ISA, mini stocks and shares ISA, for PEP/ISA transfers and direct share investment. The minimum investment is £500. The maximum investment for maxi ISAs is £7,000 and for mini stocks and shares ISAs £4,000. There is no limit for PEP/ISA transfers and direct share investment.

29 August 2007 © Moneyextra.com

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