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Bristol & West choose three way Tessa Isa

Bristol & West has introduced a five-year individual savings account (Isa) to take advantage of the numbers of investors with tax exempt small savings accounts (Tessas) that are due to mature in 2001.

The five-year Tessa Isa is linked to three separate indices, the FTSE 100, the Nikkei 225 and the Eurostoxx 50, and will pay investors 80 per cent of the combined average growth of these indices at the end of its five-year term. In the event that the indices fall in value, investors will get at least their original investment back. This approach provides a greater chance of the investor receiving the target growth.

Savers who register for the product before their Tessa matures will receive a tax-free bonus of one per cent of their investment.

Bristol & West has joined the small but growing market for capital protected Tessa Isas. The Isa is very competitive when compared to some of the other products on the market at the moment, such as the M&G protected Isa, which also invests totally in the FTSE 100 index and also has a maximum return of 80 per cent of the growth of the index.

Using multiple indices for a capital protected Isa is not unusual. Legal & General’s multi tracker Isa, which tracks the FTSE allshare, FTSE Europe (ex UK), FTSE USA, FTSE Pacific (ex Japan) and FTSE Japan indices.

The FTSE 100 index rose from a level of 3,689 on December 29, 1995 to 6,222 on December 29, 2000.

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