L & G hitches up return rates on Capital Guaranteed Bond

Returns on the bond are tax free when it is wrapped in an ISA, and the insurer guarantees capital will be returned even if the index falls, as long as the bond is held for its full six-year fixed term.

The revamped product went on the market yesterday and will be available for eight weeks. Jamie Vale, Product Development Director for Legal & General described the company’s products as "closely aligned to the needs of cautious investors".

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