L&G launches new guaranteed bond

Legal & General (L&G) has announced the launch of a new capital guaranteed bond, the first product in its new series of guaranteed equity bonds.

The Fund Tracker Capital Guaranteed Bond 1 will be available from September 14 for eight weeks.

The bond has two options. Option One is a fixed term deposit plan lasting five years.

This guarantees return of the original capital, and returns are linked to the performance of the Legal & General (Investec) Money Builder Fund.

Performance is defined as the change in price of standard units over the fixed term.

Option Two is also a five-year fixed term deposit plan. This also guarantees original capital, but provides the greater of either a 10% minimum return or 75% of the amount deposited linked to the Legal & General (Investec) Money Builder Fund.

The minimum investment amount is £500, and cash Isa investors can pay their full Isa allowance into the bond.

There is a maximum investment of £50,000 for Isa transfers and direct deposit investments.

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