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5 October 2009
Bank of Ireland Offshore launches the Guaranteed Return Equity Bond
Bank of Ireland Offshore has announced the launch of the second issue of the Guaranteed Return Equity Bond.
The bond is a 100% capital protected fixed term deposit bond over five years that works out the return depending on the performance of the FTSEŽ
100 index, with the added reassurance of a minimum guaranteed return of 10% gross#/1.92% AER†.
The deposit is linked to, but not invested directly in, the FTSEŽ 100 index. It will therefore not benefit from individual dividend income or the
reinvestment opportunity from the companies listed in the index. Although the initial capital is secure, its value could be eroded by the effects of
inflation.
Michael McKay, Managing Director for Bank of Ireland Offshore, said:
“Given current market conditions, we believe that our latest product will prove to be popular with those customers who are looking for a
guaranteed rate of return with the unlimited growth potential of one of the world’s best known financial markets - without the risk of losing
their capital.”
The bond will only be available for a limited period and closes on 27th November 2009, or earlier if oversubscribed. The minimum deposit is
£5,000 with a maximum of £1 million.
# Gross rates are fixed and do not take into account any deductions of tax.
†AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and
compounded each year. As every advert for a savings product that 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.