This product has a six-year term and will provide the greater of 22.5 per cent of the original capital or 50 per cent of the growth in the FTSE 100 index.
To calculate the returns, the closing level of the FTSE 100 index is recorded on September 26, 2005 then compared with an average produced over the final year of the term.
Legal & Generals protected capital and growth plan 5 is a similar product to Woolwich capital plus in that it is a FTSE-100 linked product with a six-year term and a minimum return above the original capital.
With this product, investors receive a full capital return regardless of index performance plus the greater of 22 per cent of the original investment or 50 per cent growth in the index. Like the Woolwich product, averaging is used in the last 12 months of the term, so the only difference is that the minimum return is 0.5 per cent higher with the Woolwich product.
However, the Woolwich product has a much higher minimum investment at 4,000, compared with he Legal & General products 500 minimum and this may be an influential factor for investors choosing between them.