Santander to Launch New Range of Index Linked Savings Bonds

Marketwired

LONDON, UNITED KINGDOM--(Marketwire -06/06/12)- With Santander's new range of options available from 6 June 2012, customers can make their money work even harder:

- By ensuring the real value of their money grows above the rate of inflation; or

- Benefiting from the potential growth in the stockmarket.

Customers will earn at least a minimum interest return, even if their chosen index does not rise over the fixed term.

Inflation Linked Savings Bond (Issue 13)

- Six-year option available.

- Santander's Inflation Linked Savings Bond helps give customers the peace of mind that the real value of their savings will not be eroded by inflation.

- Returns are linked to 105% of the growth in the Retail Prices Index (RPI) and customers have the protection that no matter what happens to the rate of inflation, they will still receive their money back plus at least the minimum return of 17% gross (2.65% AER) at the end of the six year term.

Stockmarket Linked Savings Bond (Issue 21)

- Choice of six-year term or three years and nine months.

- Santander's Stockmarket Linked Savings Bond enables customers to benefit from the potential growth in the stockmarket, whilst offering protection of at least a minimum interest return, even if the Stockmarket doesn't rise over the term.

- Returns are linked to 50% of the growth in the FTSE 100 Index and the minimum a customer will receive is 22% gross (3.37% AER) on the six year option, or 6% gross (1.57% AER) on the three year and nine month option.

Alexia Kilby, Head of Investments at Santander, said: "Our latest range of Index Linked Savings Bonds gives customers the potential to earn high rewards on their savings.

What's more, all our plans offer the certainty of earning at least a minimum interest return, even if their chosen index doesn't rise over the fixed term.

Alexia Kilby continues: "Many savers are still worried that the returns they are earning on their money will not keep up with inflation. This is exactly why Santander has developed the Inflation Linked Savings Bond.

"This pays 105% of the growth in the Retail Prices Index (RPI), so whatever inflation increases by during the term, the real value of their money will grow at a higher rate."

These offers are only available for a limited time and customers who wish to apply can do so by visiting any Santander branch, by calling 0845 765 4321 to book an appointment.

Customers can also apply online, at:

- www.santander.co.uk/inflation

- www.santander.co.uk/stockmarket

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

Details of full range:

 

-----------------------------------------------------------------
Index Linked
Savings Bonds
-----------------------------------------------------------------
Inflation Linked Stockmarket Linked
Savings Bond Savings Bond
(Issue 13) (Issue 21)
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Term 6 years 6 years 3 3/4 years
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Money back
at
maturity yes yes yes
----------------------------------------------------------------------------
Minimum
return at 17% gross / 22% gross / 6% gross /
maturity 2.65% AER 3.37% AER 1.57% AER
----------------------------------------------------------------------------

105% 50% 50%
Maximum of the growth of the of growth of the FTSE of growth of the FTSE
return at Retail Prices Index 100 Index (after 100 Index (after
maturity (RPI).     averaging).     averaging)
----------------------------------------------------------------------------
Benefit from Benefit from
potential growth in potential growth in
the stockmarket and the stockmarket and
Protect your savings earn at least a earn at least a
from future rises in minimum interest minimum interest
Details inflation return return
----------------------------------------------------------------------------

Example of returns

Inflation Linked Savings Bond (Issue 13) 6 years

- If the initial index level was 242.5 and the final level at maturity was 291.0, the growth of the RPI would be 20%. A customer would receive their money back plus 21%. This would be a return of GBP 12,100 on an initial investment of GBP 10,000.

- If the initial level was 242.5 and the final level was 254.6, the growth of the RPI would be 5%. A customer would receive their money back plus the minimum return of 17%. This is a return of GBP 11,700 on an initial investment of GBP 10,000.

Stockmarket Linked Savings Bond (Issue 18) 3 3/4 years

- If the initial Index level was 5,300 and the final level(1) at maturity was 6,360, the growth of the Index would be 20%. A customer would receive their money back plus 10%. This would be a return of GBP 11,000 on an initial investment of GBP 10,000.

- If the initial level was 5,351 and the final level(1) was 5,083, the Index would have fallen by 5%. A customer would receive their money back plus the minimum return of 6%. This is a return of GBP 10,600 on an initial investment of GBP 10,000.

Notes

 

(1) The final level is the average of the daily closing levels of the
Index during the averaging period. By using an average at the end of
the investment term the performance of the Index is smoothed from
sudden fluctuations shortly before maturity. Whilst this could reduce
the benefits of a rising market, it also reduces the adverse effects
of a falling market.

Index Linked Savings Bonds

- Provided by Santander UK plc.

- These are deposit accounts covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to GBP 85,000.

About Us

Santander UK plc is a full-service retail and commercial bank providing services to 25 million customers, with more than 1,300 branches and 28 regional business centres. It is a wholly owned subsidiary of Banco Santander. Santander UK plc manages its affairs autonomously, with its own local management team, responsible solely for its performance. Over 90% of the assets on Santander UK plc's balance sheet are UK based and it is subject to full supervision of the Financial Services Authority (FSA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK. Sovereign exposures to Europe (excluding UK) as at March 2012 are not significant at less than 1% of total assets and primarily relate to Swiss government. Total exposure to periphery countries is c. 0.3% of total assets.

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone and is among the top fifteen in the world by market capitalization. Founded in 1857, Santander had EUR 1.383 trillion in managed funds, more than 102 million customers, 14,760 branches - more than any other international bank - and 193,000 employees at the close of 2011. It is the largest financial group in Spain and Latin America. Furthermore, it has significant positions in the United Kingdom, Portugal, Germany, Poland and the U.S. northeast. Santander Consumer Finance operates in the Group's core markets as well as in the Nordic region. In 2011, Grupo Santander registered EUR 7,021 million in recurring net profit.

Contact:

Media Enquiries: Jonathan Akerman
Senior Media Relations Manager
Communications
020 7756 4190 / M: +44 (0)7850 640770
jonathan.akerman@santander.co.uk
Twitter: @JAkermanSanUK
Santander UK plc
2 Triton Square
Regent's Place
London NW1 3AN

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