View more on these topics

Second time around for Britannia International

Britannia International has unveiled the second issue of the split deposit bond, a combination of a high interest account and a guaranteed equity bond.

The product is available to new investors with at least £10,000, while the minimum amount for existing customers is £5,000.

The high-interest account element pays 5 per cent gross for three years and withdrawals cannot be made during the fixed term. The guaranteed equity bond element is linked to the FTSE 100 index for five and a half years and offers 75 per cent of any growth in this index during the term.

To calculate the returns, the closing level of the FTSE 100 index is recorded on March 28, 2003 and this is compared with an average of the closing values taken during the last 12 months of the term. The original capital will be returned to investors whatever happens to the index.

This product is similar to Northern Rock Guernsey’s offshore fifty:fifty, which also combines a high-interest account with a FTSE 100-linked guaranteed equity bond. However, its high-interest account element is fixed at 8 per cent gross for one year, which is shorter than Britannia International’s product. Some investors may prefer this because they are not locked in for three years if interest rates increase. Also, Northern Rock Guernsey’s guaranteed equity bond element offers lower potential growth of 70 per cent over a slightly shorter term of five years.

One consideration for investors choosing between the products is whether they would need to make emergency withdrawals. The Britannia International does not allow this, while Northern Rock Guernsey does, subject to a penalty of 90 day’s interest.


Outside edge

The compulsion question has been driven down Quango Gardens, that well-known cul-de-sac housing all manner of Blairite worthies locked in earnest debate about policies that the Government dare not contemplate, at least not this side of the next general election.We have a Green Paper from the Department of Work and Pensions and a consultation paper […]


“Absolutely not. I am an IFA and I find them hard enough. The man in the street will not be capable of using them to the degree that he would need to be able to.” Leon Pownsey,Independent Financial Solutions “No. They do not seem to have worked for stakeholder. People still need advice.” Anthony Malone, […]

Correspondent&#39s week

There is a tangible air of anticipation and excitement in the SimplyBiz offices – particularly surrounding those who are lucky enough be heading off for the first SimplyBiz seminars to be held in the South.For those of you who do not know, the SimplyBiz offices are in the heart of Huddersfield and we do not […]

Seller&#39s packs widely welcomed in survey

Housebuyers are welcoming the proposed introduction of seller&#39s packs to help tackle problems such as gazumping, according to a survey by Yorkshire Bank.Its quarterly housebuyers&#39 survey of 2,500 adults carried out in December reveals that 85 per cent feel the introduction of seller&#39s packs, planned for 2006, will go some way to ease the transaction […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm