Money News
Chelsea Building Society has announced the launch of the 50:50 Balance Bond - the bond splitting the customer's deposit in two, one half invested in a 1 Year Fixed Rate Bond paying 8.50% gross pa (6.80% net), the other half with returns linked to the performance of the FTSE-100 Index over a 5 year period.
If the FTSE falls or doesn't move, the investor will get this half of their original investment back in full. If the market rises, then a percentage of the increase is added to the initial investment, in this case 100%. There is no direct investment into the stock market; all of the funds invested are held in a straightforward savings account.
The Bond will be available to new investors up to November 24th.
From the date the investor opens their account, up to December 10th 2007, they will earn an initial fixed rate of 5.75% gross pa (4.60% net) on a deposit of £1000+.
On December 10th, the interest earned during this period will be added to the account balance and divided equally between the fixed rate and the GEB. Investors will receive a certificate outlining their investment and the opening level of the FTSE-100 Index.
Minimum opening and interest earning balance is £1,000.
Withdrawals are not permitted until the relevant maturity dates as authorised above
05 November 2007 © Moneyextra.com
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