Stroud and Swindon Launches a Guaranteed Equity Tracker Bond

Stroud & Swindon, the UK’s 15th largest building society, today launched a new Guaranteed Equity Tracker (GET) product which will track the performance of FTSE 100 Index.  This new product also guarantees return of the original investment and therefore provides investors with a safe investment option as well as being able to participate in potential stock market growth.

The GET is designed to run for four years. If however there is a minimum 20% growth in the FTSE 100 index on the second anniversary of the bond, the account will close and the initial capital plus 20% growth will be returned.  If there is less than 20% growth within the two years, the investment will continue to run to the full four-year term and customers will receive their capital plus 100% of any growth in the FTSE 100 Index.

The GET can be opened with a minimum investment of £2,000 up to a maximum of £500,000 for single account holders and £1,000,000 for joint account holders.  The investment term for the tracker is four years until 15 June 2011.

The account is also available as a mini cash ISA and a TESSA ISA, where the interest received is paid tax free, subject to normal ISA regulations.  The Guaranteed Equity Tracker is being launched in conjunction with West Bromwich Building Society, who are the manufacturers and administrators of the product, although the product is distributed by Stroud & Swindon.

The GET is available via Stroud & Swindon branches to existing members of the Building Society.  Non-members who are interested in accessing the product can join the society by opening one of their other savings accounts such as the Classic Gold Savings Account (minimum investment - £5).

Paul Chafer, Sales and Marketing Director of Stroud and Swindon Building Society comments: “This exciting new product from Stroud & Swindon offers a safe option for customers wanting to benefit from increases in the stock market, without having to worry about losing their initial investment.  It fills a gap in our product range and we are delighted to be working in collaboration with the West Brom. This is an excellent example of two mutual societies working together for the benefit of members. We encourage those who do want to invest in this product to do so at their earliest convenience as we expect it to be very popular.”

 

To locate your closest branch visit www.stroudandswindon.co.uk or call 0800 618161

 
For further information please contact:

Paul Chafer
Sales and Marketing Director
Stroud & Swindon
01453 768407

Lee Blackwell / Brian Thorn / Karen Butcher
The Wriglesworth Consultancy
020 7845 7900

Stroud & Swindon is the 15th largest building society in the UK with assets in excess of £2.8 billion.  The Society operates through a dedicated team of intermediary business development managers, with a branch network of 22 offices and 20 agencies in the South West, complemented by a direct call centre based in Stroud and website www.stroudandswindon.co.uk. 

Guaranteed Equity Tracker Standard:

Guaranteed Equity Tracker Mini Cash ISA:

Guaranteed Equity Tracker TESSA ISA:

• Available via Stroud & Swindon branches.
• Only available to existing Stroud & Swindon members.  Non-members are eligible if they open an account with Stroud & Swindon (minimum investment £5).
• Minimum investment of a full transfer from an existing TESSA ISA applies.
• Investment term runs to 15 June 2011 but may only run to 2nd anniversary of the product depending upon the growth of the FTSE 100 index.
• Investors must be aged 18 or over.
• Interest earned during offer period is tax-free.
• Two withdrawals per tax year are permitted, which cannot be replaced.  A third withdrawal results in the closure of the account.  A charge equivalent to 180 days (gross) interest based on the prevailing rate of West Bromwich Building Society Easy Access ISA.  The charge is deducted from the amount withdrawn.
• Stock market growth is subject to averaging: the FTSE 100 index is averaged between 15 June 2007 to 14 September 2007 to find the initial index level.  The maturity index level is averaged from 15 June 2010 to 15 June 2011.