Capital Protected Investment

Capital Protected Investment Combi Edition is a combination of the Capital Protected Investment Fund 6 which provides 100% of the growth in a Global Basket of the world’s leading stock market indices up to a maximum return of 60% on top of your original investment, and a Special Instant Access Savings Account paying an attractive interest rate of 6.50% AER and 6.75% AER for Royalties customers.

If you keep your capital until 9 January 2015 the Capital Protected Investment Fund 6 aims to return your original investment plus 100% of the growth in the Global Basket, subject to a maximum of 60% on top of your original investment.

With the Capital Protected Investment your original investment is protected and you benefit from a competitive rate on your Special Instant Access Savings Account from day one.

On balances up to half of the amount invested into Capital Protected
Fund 6:
You will receive an interest rate of 2% above Base Rate guaranteed until 9 January 2010 – the interest paid is currently 6.50% AER (6.35% Gross)
For Royalties and Royalties Gold customers an additional 0.25% guaranteed until 9 January 2010 – the interest paid is currently 6.75% AER (6.59% Gross)
AND
On balances greater than half of the amount invested in Capital Protected Fund 6 and all balances from 9 January 2010 until 9 January 2015:
You will receive an interest rate of 0.5% below Base Rate guaranteed – the interest paid is currently 4.00% AER (3.94% Gross)

The Capital Protected Investment Fund 6 benefits from the growth in a diversified basket of the world’s leading stock market indices, up to a maximum return of 60% on top of your original investment, while keeping your original investment safe, provided you invest your money for the full 6 year period. Capital Protected Investment is designed to operate over a five year period and therefore encashment prior to the end of the 6 year term could result in you receiving back less than your original investment. Even if the Global Basket falls, at the end of the term, the Capital Protected Investment aims to return at least your initial investment.

Even if the Global Basket falls, at the end of the term, the Capital Protected Investment aims to return at least your initial investment.

The Capital Protected Fund 6 allows you to invest tax efficiently by using your Stocks and Shares ISA allowance and/or your Capital Gains Tax annual exemption.

Interest payable on balances invested in the Special Instant Access Savings Account would be subject to income tax.

1. Invest using your Stocks and Shares ISA allowance
2. Invest directly (non ISA)
3. Transfer any existing Stocks and Shares ISAs

The Capital Protected Investment Combi Edition is available on a limited issue basis with a closing date of 22 December 2008 (or sooner if it sells out). If you plan to transfer an existing ISA, the closing date for completed applications is 26 November 2008.

The minimum investment is £3,000 and you must invest your money for the six year period for capital protection to apply.

The table shows how your Fund could grow and how much you might get back over the 6 year term, depending on the performance of the Global Basket.

The examples assume an initial investment of £10,000, however you can invest from as little as £3,000.

* Total return excludes any growth during the period the funds are invested in cash deposits. The Global Basket growth quoted is after Averaging and excludes dividends. Gross interest is the interest rate paid before the deduction of Income Tax. AER is the Annual Equivalent Rate and illustrates what the interest rate would be if paid ad compounded each year.

These figures are not projections, they are for illustration only and assume the original investment remains invested until 9 January 2015.

The exact amount you can expect to get back will depend on:

• How much you invest (the minimum investment is £3,000)
• The performance of the Global Basket over the term of your investment
• Any growth achieved by the Fund during the Cash Investment Period

The minimum initial investment you can make in the Capital Protected Investment is £3,000. If you are investing directly (i.e. not via an ISA) there is no maximum investment.

Yes. If you are investing via a Stocks and Shares ISA, the maximum amount you can invest is £7,200. (less any investment in a Cash ISA in the same tax year)

Yes. You can transfer existing Stocks and Shares ISAs. Applications for this transfer must be received by 5 September 2008. Your investment will be in an ISA wrapper and any returns will not be subject to any tax.

Please note: from 6 April 2008 PEPs will merge into stocks and shares ISAs.

If you are investing via an ISA, any growth or withdrawals will be free from Income Tax and Capital Gains Tax. If you are investing directly, growth will be subject to Capital Gains Tax. You may be able to use your Capital Gains annual tax exemption to reduce any tax payable.

In order to protect your original capital in full, you must invest until 8  October 2013.

Yes. You can sell a minimum of £500 worth of shares at any time but you must retain at least £500 worth in the Fund. If you sell before the 8 October 2013, you may get back less than your original investment.

We will contact you with the options at least a month before the Protection Date.

Your original capital is protected provided your investment remains in place until the Protection Date on 8 October 2013. However, you should bear in mind that inflation may reduce the buying power of your money in the future.

Yes, there are some charges. The Details of Terms will show you the exact level of charges that apply to the Fund. You will receive this during the application process.

Every six months we'll send you a statement and valuation for your investment. You can also get an up-to-date valuation at any time by calling us on 0845 300 2585.