Nationwide launches new guaranteed equity bond with returns equivalent to 100%

29.06.2005 No need to complete a tax return with Nationwide’s GEB
Nationwide has today launched a new Guaranteed Equity Bond (GEB) with growth linked to the FTSE 100 index. The bond guarantees to return all the original capital invested plus 80% of any FTSE 100 index growth at the end of the five year term. Returns are paid net of tax which means the growth is equivalent to 100% before tax for basic and higher rate tax payers.

Nationwide’s GEB, which is linked to a UK Life Bond, compares favourably with deposit-based GEBs from other institutions. Plus, unlike deposit based products there’s no tax to pay for nil, starting and basic rate tax payers, so customers don’t need to declare any growth on their tax return.
Nationwide is also offering an early investor bonus to customers who invest in the Guaranteed Equity Bond.
The bonus is:
0.40% for investments made between 27 June and 9 July 2005 0.30% for investments made between 11 July and 23 July 2005 0.20% for investments made between 25 July and 6 August 2005
Clive Parkinson, managing director of Nationwide Investments, says: "For those people who wish to invest in the stock market but are worried about the risks, guaranteed equity bonds are the investment solution. Investors have the potential to benefit from stock market growth without putting their original investment at risk. Investors will receive an early bonus of up to 0.40% which will be added to the original investment, on the start date of 6 September 2005.
"The GEB pays a return of 80% on any growth in the FTSE 100 Index. As the bond is operated through a life company, this is paid after tax. This means that, for basic and higher rate tax payers, the return is equivalent to 100%."
27 Jun 2005
From Wednesday 8 June 2005 customers will be able to invest from as little as £500 in the Bond and earn a guaranteed return of 4.75% p.a. gross/AER (3.80% net) until 8 August 2006.

C&G's Savings Director, Rick Hunkin, commented; "Our latest One-Year Fixed-Rate Bond provides excellent value for anyone who relies on the income from their savings with a guaranteed return of 4.75% until 8 August 2006."

Accounts can be opened at any C&G branch, by post through C&G Invest Direct, or by downloading an application form from C&G's website, www.cheltglos.co.uk - information is also available by telephoning, free, on 0800 717505. This offer will be available for a limited period only.

Notes to editors:
1. A Bond opened with £25,000 would grow to £26,187.50 by the end of the term (subject to all gross interest earned being reinvested and account being opened on 8 August 2005).

2. Interest will be compounded annually to the account or can be taken as a monthly income on a minimum balance of £5,000 or more. Monthly interest is earned at 4.64% gross (4.75% AER, 3.71% net).

3. An emergency withdrawal facility is available, subject to a charge equivalent to 120 days' gross interest on the amount withdrawn.

4. The new One-Year Fixed-Rate Bond (Issue 12) will replace the previous One-Year Fixed-Rate Bond (Issue 11).