Up to half the investment can be placed into the high-interest account element. This is a tracker product which pays gross interest at 0.75 per cent above the Bank of England base rate a year. This can be paid monthly or rolled up until maturity and up to five penalty-free withdrawals can be made each year during the term. Any more withdrawals beyond this are not allowed.
The remainder of the investment, or all of it if the investor prefers, goes into the guaranteed equity bond element, which is linked equally to the performance of the FTSE 100 and S&P 500 indices for five and a half years. It offers 100 per cent of the average rise across the two at the end of the term along with a full capital return regardless of the performance of the indices.
To calculate the returns, the closing level of the indices are recorded at the start date of the term and this is compared with an average of the closing values taken during the last 12 months of the term. The performance of each index will count equally towards the final return.
The closest comparison is Bristol & West Internationals five year income & growth GEB Issue 15.
The high interest account element of this product is also a tracker, paying 1.25 per cent above the Bank of England base rate. This is higher than Britannias rate, but investors will be getting a higher rate of income over a slightly shorter term.
The guaranteed equity bond element of the Bristol &West product is linked not only to the FTSE 100 and S&P 500 indices, but also the Nikkei 225, and DJ Eurostoxx 50 indices. It has a lower participation rate of 50 per cent, but this does not make it any more or less attractive than the Britannia product as the inclusion of the other two indices could either boost or drag down the returns from the FTSE 100 and S&P 500 indices.