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B&W Toisa mixes bond and fixed rate

Bristol & West is introducing a new flexible Tessa-only Isa that mixes an equity-linked investment and a five-year fixed-rate bond in the same wrapper.

The Toisa gives customers the choice of placing the investment in a FTSE 100 linked guaranteed equity bond or putting up to a third of the capital in a five-year fixed-rate element which pays 5.25 per cent gross annually.

The return on the guaranteed equity bond option will be the growth of the FTSE 100 index over five years, up to a maximum of 50 per cent.

Withdrawals are not permitted on the bond option but investors with the fixed-rate option can make penalty-free withdrawals at any time.

Investors pay no initial or management charge and can access the product until April 5. Commission is 2 per cent.

Distribution development manager Andy Jones says: “The flexible Toisa is a unique addition to the Tessa-only Isa market.

“It gives investors a stockmarket-linked investment but allows them to choose to receive guaranteed tax-free interest of 26.5 per cent over five years on up to a third of their investment.”

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