NDF Administration has joined forces with investment bank Credit Suisse First Boston to introduce Tessa triple plus, an individual savings account (Isa) aimed at investors with maturing tax exempt special savings accounts (Tessas).
There are three different investment periods open to investors and before the closing date of each period, eight per cent a year is accrued in interest. Investors can roll over their investment to the next investment period and a further eight per cent will be paid.
The Isa guarantees the return of 100 per cent of the original capital providing the Isa is held for the five-year term. In addition, investors will get 100 per cent of the growth of the FTSE 100 index.
The level of the FTSE 100 index is measured every six months throughout the term and the maximum gain in any six month period is limited at 10 per cent. At the end of the term, all the six month rises and falls are taken into account to produce the final return.
The Tessa Isa market is very competitive, with M&G, Birmingham Midshires and Leeds & Holbeck among recent entrants. However, the NDF Administration Isa distinguishes itself from the rest with the accumulation of interest in the run up to the five-year term, which could be attractive to investors.
The FTSE 100 index rose from 3644.78 points on March 15, 1996 to 5729.22 points on March 15, 2001.