2 Year Trigger Guaranteed Equity Bond (issue 3)
How to apply
call us on
0845 603 3342
This is a deposit-based investment linked to the performance of the FTSE 100 Index over a 2-year period.
As long as the average of the FTSE 100 Index# hasn't fallen between the initial and maturity index readings over the 2-year term, you will earn a 17.18% gross (8.25% AER*)† return on your investment.
Even if the FTSE 100 Index does fall, you'll still receive 100% of your original investment back at the end of the term. Your initial capital is completely protected, because your money is invested in a deposit account and linked to the FTSE 100 Index, rather than invested in it.
Added bonus
If you invest early, your invested funds will receive the rate payable on our AA Telephone Access Plus Account††. You will receive this rate on your invested funds until 14 July 2008.
- Each issue of this type of bond has a limited amount of money that can be invested in it. If this limit is reached, the issue will be closed. So we urge you to apply early in case the issue becomes fully subscribed before the closing date (30 June 2008).
- You can invest anything from £500 to £1 million.
- For the potential of higher returns, your money must be invested for the full 2-year term.
- The term runs for 2 years from the end of the offer period (30 June 2008) until the maturity date (30 June 2010).
- The cost of capital protection is included in the returns we offer.
- You may withdraw funds or close your account before the full term, although a charge of 5% will apply on the amount withdrawn, and you'll receive no growth on any funds withdrawn (see Terms and Conditions).
- This product is not suitable for those who need access to their money before the end of the term.
- Don't forget, inflation would reduce what you could buy in the future with your investment.
2 Year Trigger Guaranteed Equity Bond brochure
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*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time. Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. If you are a higher rate tax payer you may have a further amount to pay.
†Assumes investment is made 30 April 2008.
††AA Telephone Access Plus Account variable rate 6.00% gross (5.99% AER*), correct as at 1 March 2008.
#To assess the FTSE 100 Index performance over the period of your investment, we use a special averaging feature at the start of the bond and at the end of each year. This averaging may restrict or improve the return you receive. Please refer to 4a in the Special Terms and Conditions.
Current and previous Bank of England interest rates can be found at the Bank of England website.
Information on the current and past performance of the FTSE 100 Index is available at www.bloomberg.co.uk (link opens new window).
Past performance is not a guide to future performance.
Details of current best buy products can be found at www.moneyfacts.co.uk
Calls may be monitored and recorded for quality assurance and compliance. Lines are open Monday to Friday 8am to 6pm, and Saturday 9:30am to 1pm. Call charges may apply.
To contact the FSA Consumer helpline, please ring 0845 606 1234. Or visit the FSA website at www.moneymadeclear.fsa.gov.uk (link opens new window).
The deposit-taker for the AA savings accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered in the FSA's Register and its Register Number is 169628. Registered office: The Mound, Edinburgh EH1 1YZ.
Bank of Scotland plc is a member of the Financial Services Compensation Scheme under the Financial Services and Markets Act 2000. Where a customer has made deposits in a savings or bank account, payments under the scheme are limited to 100% of the first £35,000, subject to a maximum payment to any one depositor of £35,000. This limit applies provided the insolvency or other default of the bank or firm concerned takes place after 1 October 2007. Please note that accounts with Bank of Scotland include accounts in its divisions and trading names, for example, Halifax, Intelligent Finance and Birmingham Midshires. Most deposits denominated in sterling and other European Economic Area currencies and euro made with offices of the bank within the European Economic Area are covered. There are different levels of protection for other investments covered by the Financial Services Compensation Scheme. Further details of the scheme are available on request.
Bank of Scotland plc is a member of the British Bankers' Association and subscribes to the Banking Code, copies of which are available upon request.