Northern Rock and Legal & General are teaming up to launch an instant
access savings account offering fixed interest of 7.05 per cent alongside
an investment bond.
The companies say the offer follows the success of previous issues of the
Balance Choices account.
Policyholders are offered a guaranteed return on the instant access
account until July 1, 2002 together with the growth or income opportunities
from an investment in the L&G with-profits income bond.
The product is available through both Northern Rock and L&G. Minimum
opening balance is £5,000 and maximum £500,000 per investor or
£1m for joint applicants.
Savers can choose to invest up to 80 per cent in the L&G with-profits
bond, with the remaining 20 per cent in Northern Rock's instant access
account, or opt for a split to meet their requirements.
Northern Rock says the bond is a low-risk investment designed to provide
the potential for greater returns than the average deposit account but with
less volatility than a direct investment in the stockmarket.
Northern Rock sales and marketing manager Andy Kuipers says: “By giving
increased choice as far as the percentage of funds invested in the
with-profits income bond is concerned, we believe the issue will appeal to
a broader range of savers.
“Customers can enjoy the best of both worlds by committing funds between
saving and investing.”