Capital Protected Bonds
The Capital Protected Bond is a product for savers and investors who do not want to risk the initial capital of the investment. The savings bond is suitable to all savers and investors. The capital-protected bond is a safer option than, for example, equity investment. Its expected yield is higher than that of a conventional bond.
Capital Protected Bonds offer customers the opportunity to grow their investment, with the initial deposit being protected. These are effectively lump sum deposit accounts which promise to give back your full capital investment after a given term, usually five or six years, plus a return based on the performance of a stock market index, such as the FTSE All Share, or FTSE 100.
Capital protection means that you as investor will get the full initial capital back on the maturity date. Capital protection does not cover any potential premium or subscription fee.
The investment themes around savings bond vary, so you will enjoy good diversification for your investment.
The bond yield is tied to the performance of the underlying asset during the term to maturity. The underlying assets may include equities, currencies or commodities.