Index Linked Savings Bonds

Its aims

Index Linked Savings Bonds are deposit bonds with a fixed term. They provide an opportunity to benefit from the potential growth of an Index, whilst ensuring the return of your initial deposit at the end of the term, regardless of the performance of the Index.

Important information

Please remember there is no guarantee the Index will rise or behave the way it has done in the past.

Withdrawals or account closure will not be permitted during the fixed term period and no additional deposits can be made once the initial deposit has been made.

The interest return is only payable at maturity and if the Bond is held for the full term.
AER stands for Annual Equivalent Rate and shows what the interest return would be if we paid an interest return and added it to your Bond each year. Gross is the rate before the deduction of the basic rate of income tax, currently 20%.

The interest return will be either the fixed minimum or a variable maximum and depending on the performance of the Index.

¹ Subject to daily averaging over the last six months of investment term. By using an average at the end of the fixed term the performance of the Index is smoothed from sudden fluctuations shortly before maturity. Whilst this could reduce the benefits of a rising market, it also reduces the adverse effects of a falling market.

Rates and information correct as at 11th May 2012