Nationwide launches new guaranteed equity bond

Nationwide has introduced a new guaranteed equity bond (GEB) option which offers a definite return.

The product guarantees to give either the original investment plus ten per cent or up to 55 per cent of any growth in the FTSE 100, Nikkei 225 and DJ EuroStoxx 50 indices, whichever is greater, back to the investor.

Customers who decide to take up Nationwide’s new bond will also be able to access an early investor bonus.

This will be available between October 23rd and December 16th and will increase any investment by between 0.2 and 0.55 per cent, depending on the date of the investment. The product will be closed if it is fully subscribed before December 16th.

Clive Parkinson, managing director of Nationwide Investments, said: "The Nationwide GEB is ideal for those people who wish to invest in the stock market, but have concerns about the risk involved.

"The GEB not only offers peace of mind to the investor by providing a capital guarantee but also goes one step further. It guarantees a minimum return of ten per cent – so the return is always more than the original amount invested."

Nationwide’s new product does not have any setup fees and requires a minimum investment of £5,000.