Bristol & West has introduced three new guaranteed equity- linked accounts to the market. These are designed to provide the choice of capital growth or a combination of income plus capital growth with no risk to the original capital.
The bonds should appeal to the risk-averse investor and may have a wide appeal as the minimum investment for two of the bonds is low at just £500.
As the bonds are based on normal bank accounts, all the returns are gross. Rival bonds are generally single-premium insurance bonds and their returns are net of basic-rate tax.
Unlike similar products available from other providers, the Bristol & West range also offers IFAs up to 3.5 per cent commission.
The guaranteed equity bond is designed for capital growth and returns a potential of 115 per cent on maturity.
The balanced guaranteed equity bond provides greater flexibility, as the bond is split between a one-year and a five-year bond. The one-year part earns 10 per cent a year and allows withdrawals at any time. The five-year bond returns 100 per cent of the indices' growth on maturity.
The guaranteed equity income bond is split equally to achieve capital growth, up to a maximum of 60 per cent, and an annual or monthly income of 8.75 per cent over the five years.