New bond has lock-in option

CITIBANK Life's new Capital Guarantee 100 Bond offers investors the opportunity to lock in the gain on the bond's value when it grows by 50 per cent.

The bond, which is linked to the performance of the FT-SE 100 share index, also guarantees return of the initial investment if the index falls over the bond's five-year term.

Investors, who must put in a minimum of pounds 3,000, are guaranteed to receive the full value of any rise in the FT-SE index (before charges, but net of basic rate tax).

Initial charges are 5 per cent, with an extra 3 per cent for investors who take up the 50 per cent lock-in option. There are no annual charges.

Applications are being accepted until 4 December. Bonus allocations, ranging from 0.5 to 2 per cent, will be given to investors who put their applications in before then.

Details are available on Freephone 0800 225226.