L&G offers 40% fixed rate bond Isa

Legal & General has launched a fixed rate bond offering 40% growth over five and a half years or an ...

Legal & General has launched a fixed rate bond offering 40% growth over five and a half years or an annual income of 6.25%. Fixed Rate Bond II, which pays out income on a quarterly basis, will be available as an Isa as well as for Pep transfers. The income payment is equivalent to an interest rate in a conventional bank or building society account of 7.8%pa gross for a basic rate tax payer and 10.4%pa gross for a higher rate tax payer. The money raised from the product will be put into a Dublin-listed company, which in turn will invest in medium-term notes with a Standard & Poor's rating ...