Bristol & West has launched a three-year bond which guarantees to return capital in full but gives a 30 per cent gain should the FTSE 100 index continue rising or stay the same.
The Capital 30 Bond get its name from the 30-day notice period required to access the capital.
The lender says this will suit people who need to take out money for university fees.
The bond, launched on February 21, is available until March 20. It matures on July 3 2003. The minimum investment is £5,000 and the maximum £1m.
B&W is confident the bond will deliver on maturity as the FTSE 100 has risen consistently in every three year period over the last 15 years.
B&W director of savings and investments Craig Knight says: “Our Capital 30 bond smoothes the wildest swings of the equity market by protecting our investors' capital, while giving them the racing certainty of a 30 per cent bonus after three years. We think it's an excellent offer and I'm confident that the issue will be a sell-out.”