The plan comprises a one-year fixed rate savings account from Alliance & Leicester and a portfolio bond from Legal & General. The combination of these products is designed for investors looking to balance short-term security with long term growth potential.
The fixed rate savings account element offers the competitive annual rate of 8% gross with no risk to capital. Investors can rest assured that their savings will grow to a guaranteed sum at the end of the one-year term and the maximum deposit amount of the account is GBP1,000.
The Legal & General portfolio bond aims to provide higher returns than from a typical deposit account over the medium to long-term. Unlike a deposit account, capital and income in the portfolio bond are not guaranteed and investors may get back less than they invested. The bond provides access to a range of funds, each with different aims and a minimum investment of GBP5,000, recommended to be invested for at least five years, ideally longer.
Ewan Edwards, head of savings and investments division at Alliance & Leicester, said: This plan balances the need for a safe haven for short term savings, whilst giving the opportunity to invest over the longer term for potentially higher returns than from a typical deposit account. The Balanced Savings & Investment plan suits those who are looking to make their money work harder, but still like the security of keeping some of their money in cash.
