Product category:
Savings and investment
News Release from: Alliance & Leicester | Subject: Savings
Edited by the Insidemoneytalk Editorial
Team on 17 September 2007
Alliance and Leicester launch 6 year
Growth and Income account paying 8.00%
gross/AER
1% bonus for investments before 1 October 2007
Alliance and Leicester has launched a new tranche of its 6 year Growth and Income account paying 8.00% gross/AER on half of the money invested, whilst the other half receives 50.00% of any growth in the FTSE 100 index The new product will be open for investment for ten weeks from Friday 14 September 2007 to Friday 22 November 2007*
This article was originally published on Insidemoneytalk on 20 Feb 2007 at 8.00am (UK)
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The new Growth and Income account is a fixed six year term deposit account that has two distinct features offering a fixed annual income and growth potential with a link to the FTSE 100 Index at the end of the period.
As it is a deposit based account, it has a money back guarantee that promises to pay back the original money invested if it is held for the full six years.
Up to £3,000 a year can be placed in a mini cash ISA.
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Alliance and Leicester makes further improvements to its ISA products
Last week, Alliance and Leicester increased the rate on its new Premier ISA to 8.10% gross pa/AER, making it a leading rate for tax efficient savings.
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Rachel Curtis, Senior Manager for Investments at Alliance and Leicester commented: "Given the recent stock market volatility we have seen, this product is ideal for customers who are keen to invest, but want to know their money is safe.
The 6 Year Growth and Income account offers customers the chance to take the first step from saving into investments and dip their toes in the stock market, without risking their capital." The funds invested are placed with the deposit taker Credit Suisse at the start of the investment.
The return is calculated in two ways - a regular income is paid at a rate of 8.00% annually on half of the original capital amount.
The other half provides 50.00% of any capital growth in the FTSE 100 Index at the end of the six year term.
This investment does not take account of dividends that would be available through holding shares in the FTSE 100 Index directly.
Rachel Curtis continues: "The account is designed to achieve an inflation beating return for savers by combining the prospect of capital growth on half of the investment with a better rate of income than is likely to be available on standard deposit accounts on the other half.
"Anyone who is looking to invest with the safety net of a money back guarantee, wants a fantastic interest rate and the chance to benefit from stock market growth at the end of the six year term, should come and talk to us to find out more." Alliance and Leicester offer a range of guaranteed accounts in partnership with Credit Suisse.
To arrange a financial review, customers should call 08000 68 66 99, lines are open 8am - 9pm Monday to Friday and 8am to 4pm Saturdays.
Or visit their local Alliance and Leicester branch.
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