Newcastle Building Society has unveiled a Tessa only individual savings account(Isa) that is linked to three stockmarket indices.
The global guaranteed bond Tessa only Isa will track the performance of the FTSE 100, Nikkei 225 and Dow Jones Eurostoxx 50 over a five year term.
Investors with up to £9,000 to invest are guaranteed that their original investment will be returned and they will also get up to 85 per cent of growth in the indices.
The Isa starts tracking the indices on September 14, 2001 but investments made before that date will accrue interest of 5.5 per cent gross a year, before the five-year investment term begins.
The final returns are based on the difference between the starting levels of the indices and the closing levels, using the average level of each index during the final year of the term.
Investors with maturing Tessas who do not want to reinvest in a cash Tessa only Isa because of poor interest rates, may find this product appealing, especially if recent stockmarket turbulence has made them hesitant about risking their money.
The use of three indices can be seen as a double-edged sword. On the one hand, it prevents investors from putting all their eggs in one basket so they are not at the mercy of one index. But on the other hand the tendency for global stockmarkets to follow the same direction means that investors could end up with not much more than their original investment.