Legal & General has announced the release of a new capital protection product offering a minimum return of 26 per cent.
It follows research carried out by L&G that showed investors are still cautious due to the continued uncertainty in equity markets.
As such they are looking for 'protected' returns over and above that which may be expected from a typical deposit account.
L&G explains that the Protected Capital and Growth Plan is a stock market linked investment that pays a minimum 26 per cent return irrespective of how the FTSE 100 performs.
Legal & General's retail investments marketing director, Claire Stracey, says: "Our research shows that cautious investors rate 'protection of capital' and 'a fixed return' top on their investment intentions list in the current climate."
Therefore, based on an initial investment of £7,000, investors would receive at least £8,820 when the plan matures.
Ms Stracey points out: "This is equivalent to 3.9 per cent (net) a year for six years, a rate that matches most current bank or building society deposit accounts."
The minimum investment is £500 and the maximum for Maxi ISAs is £7,000, with the Mini stocks and shares ISAs ceiling sitting at £3,000. There is no limit for PEP/ISA transfers and direct share investment.
Ms Stracey concludes by saying: "Plus, if the FTSE 100 Index rises strongly the potential for growth could be far greater than for deposit based savings."
The Protected Capital and Growth Plan will be available from November 1st 2004.To see other investment bond offers, click here.
© DeHavilland Information Services plc