02 January 2013

Legal & General's eighteenth product in its long running series of structured deposit bonds, Legal & General 6 Year Growth Deposit Bond 18, opens for investment today Wednesday 2 January and closes on Friday 1 March 2013.

When held until the end of the fixed six year term, the Bond offers investors a minimum return of capital or if greater, a potential return of 115% of the growth in the FTSE 100 Index up to a maximum value of 40% gross of the original investment (5.77% AER).

However, if investors take out some or all of their money before the end of the fixed term they may get back less than they originally invested.

David Beard, Business Development Manager said; "This structured deposit series has proved popular for over 30 months with 'cautious investors'.

With no downside and the opportunity to benefit from FTSE 100 Index linked returns without the risk to their capital, it's not surprising to see how this proposition could hold strong appeal to risk averse investors.

Investors in Legal & General 6 Year Growth Deposit Bond 18 should receive the return of their original investment at the end of the six year term whatever happens to the FTSE 100 Index.

Whilst the product is designed to return the customer's original capital at the end of the six year term, this may not happen if the deposit taker was unable to repay us what they owe.  In this scenario, the customer may lose some or all of their capital.

However, the deposit taker is a member of the Financial Services Compensation Scheme (FSCS), which covers the first £85,000 each customer holds with a particular bank or building society."

The minimum investment is £500 and the Bond is available as a deposit plan (for individuals, pension trustees, charities and corporate applications).

Investors can also use their cash ISA allowance, where available, and invest up to £5,640 for the 2012/2013 tax year. There is no maximum for cash ISA transfers, or if investing in a deposit plan.

The last date for ISA transfers is 15 February 2013 to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 1 March 2013.

Commission for Financial Advisers is 3% of the sum invested. 

Full details for this product are available on Legal & General's dedicated adviser website www.landgstructuredproducts.com.

Advisers can also contact Solutions First on 0370 050 0614 
(Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  
Or email structured.team@landg.com

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

1. The contract start date is Wednesday 20 March 2013 and the end of the fixed term is 20 March 2019.

2. This plan is not suitable for customers who may need to access their money before the end of the six year term or who may be seeking a definite return.

3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on 20 March 2013 and the average level of the Index in the last 12 months of the investment, commencing 20 March 2018 to 20 March 2019.

4. The average level is based on the closing level of the Index on the 20th of each month during the averaging period (13 observations).

5. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

6. The gross rate is the rate of interest that would be payable before the deduction of income tax.  This is the rate we pay on a cash ISA.

7. The 6 Year Growth Deposit Bond 18 is designed to return the original investment at the end of the fixed term. If investors take out some or all of their money before the end of the fixed term, they may get back less than they originally invested.

8. The Deposit taker is Cater Allen Limited.

9. The return of the original investment and any applicable return is dependent on Cater Allen paying this money to us. This might not happen if Cater Allen default or become insolvent and unable to repay us this money. If they don't repay us, the investor could lose some or all of their original investment. Cater Allen is a member of the Financial Services Compensation Scheme, which covers the first £85,000 each customer holds with each bank or building society.

10. Taxation - as this is a deposit investment any growth received is treated as interest. The cash ISA (and an ISA transfer) is a tax free investment. Any growth received through the deposit account will be paid net of UK income tax at the basic rate (currently 20%). Non tax payers can reclaim this tax. Higher and additional rate tax payers will have further tax to pay. SIPP, SSAS, charity or company applicants can be paid without the deduction of income tax but only where sufficient documentary evidence is provided.

11. This investment does not invest directly into the companies that make up the FTSE 100 Index so no dividend income is received.

The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 30 June 2012, we were responsible for investing £388 billion worldwide on behalf of investors, policyholders and shareholders.  We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

6 Year Growth Deposit Bond 18 is provided by Legal & General (Portfolio Management Services) Limited.

For more information please contact:

Legal & General (Portfolio Management Services) Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.

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