Nationwide Building Society Announces New Equity Bond and Savings Cash ISA Options

LONDON, March 6 /PRNewswire/ -- From Monday 1 March 2010, Nationwide Building Society offers the Protected Equity Bond -- a deposit-based plan which offers returns linked to the performance of some of the world's leading stock market indices.

The Protected Equity Bond currently available is the Stock Market Linked Savings Bond (SMLSB) 2 provided by Legal & General (L&G). The Protected Equity Bond is designed to return a minimum 11.00% gross (1.75% AER) at the end of six years. Subject to final year averaging, there is also the potential for further stock market linked growth of up to 50% of the original investment when held for the full six years. If the maximum potential return is achieved, this is the equivalent to 6.99% AER.

As the Protected Equity Bond does not invest directly in company shares or investment funds, balances are protected from any negative stock market movement.

Nationwide provides a range of options to help customers make the most of their full annual ISA allowance and the Protected Equity Bond is available as both a deposit plan and as a cash ISA.

Also, on 6 April 2010, the increased annual ISA allowance limit of pounds Sterling 10,200 will be available to all, giving consumers a bigger tax break opportunity on their savings and investments. People aged 50 or over on, or before 5 April 2010, are already entitled to the increased overall annual ISA allowance limit.

Of the new pounds Sterling 10,200 annual ISA allowance, up to pounds Sterling 5,100 of this can be invested in a cash ISA and the remaining amount in a stocks and shares ISA. Alternatively, up to the full annual allowance can be invested in a stocks and shares ISA.

Until the new tax year, the annual ISA allowance limit for the under 50s is pounds Sterling 7,200, of which up to pounds Sterling 3,600 can be invested in a cash ISA and the remaining amount in a stocks and shares ISA, or up to the full amount in a stocks and shares ISA.

SOURCE Nationwide Building Society