Chelsea announces the launch of Chelsea Guaranteed Equity Bond (Issue 1)
9 February 2007
On Saturday 10 February Chelsea will launch the first issue of a Guaranteed Equity Bond (GEB).
Chelsea's GEB is designed to help customers benefit from any growth in the FTSE-1001 Index over the 5 year period of the GEB Term. Any growth is then multiplied by a Participation Rate of 115%, which gives the return to the customer.
The money invested by the Customer is not actually invested in the stock market but the return is linked to the percentage of any change in the FTSE-100 Index over the GEB Term.
Limited Offer
Chelsea's GEB is a limited offer product. The closing date is 31 March 2007 or sooner if the issue becomes fully subscribed before then.
Minimum and maximum investment
The minimum investment is £1,000. The maximum investment is £1million provided that the total investments the customer holds with Chelsea do not exceed the aggregate of £1million.
GEB Term
Chelsea's GEB is for a 5 year term. The term will start on the 24 April 2007 (GEB Start Date) and end on the 24 April 2012 (GEB Maturity Date). No withdrawals may be made during the GEB Term, although exceptions will apply in the event of the death of the customer during the GEB Term. Should the customer change their mind after opening the account, a 14 day cooling off period will apply.
From the date the customer first opens the account until the GEB Start Date, the following fixed rate of interest will be earned on the investment:
| Investment balance | Annual rate | ||
|---|---|---|---|
| Gross pa* | Net pa* | AER+ | |
| £1,000 plus | 3.85% | 3.08% | 3.85% |
On the GEB Start Date (24 April 2007), the interest accrued during the initial period, will be added to the account balance and will be invested into the GEB.
Customers will, shortly after the GEB Start Date, be sent a certificate confirming their investment into the GEB (to include interest accrued during the initial period) and the opening level of the FTSE-100 Index.
Payment of interest
Apart from the interest earned between the account opening date and the GEB Start Date, the next interest payment date will not be until 7 working days after the GEB Maturity Date (24 April 2012).
Chelsea's GEB will not be suitable for everyone. Before a decision is taken it is recommended that the customer reads the full GEB leaflet and understands the terms which apply and the risks involved.
To receive full details of Chelsea Guaranteed Equity Bond (Issue 1) and a full information pack by post call the free phone information line on 0800 169 1076.
Calls may be recorded and/or monitored for security, training and customer service purposes.
Should you require any further details on this product, please let us know and a PDF containing full product details can be sent out.
Notes
- Chelsea's GEB is not sponsored, endorsed, sold or promoted by the FTSE International Limited (FTSE) or by the London Stock Exchange or by the Financial Times (FT)
- Chelsea is the 6th largest building society with assets of over £11bn
- Further information for media about the Society can be found by visiting: http://www.thechelsea.co.uk/html/media/index.html
For more information contact Vicki O'Connell on 01242 271466 or Susie Ratcliffe on 01242 271332
*Gross/net: Net interest equals gross interest less income tax at the rate specified by law
+AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year. Withdrawals and date of account opening may affect the AER
This page must be read in conjunction with the Information for Chelsea savers page.
