27 March 2003: Investors eager to make more of their money, but not prepared to risk any of their capital can now invest in the Zurich Guaranteed Account launching on 7 April.
The Zurich Guaranteed Account from Dunbar Bank offers 100% capital guarantee regardless of the movement of the FTSE 100 index. The Account has a fixed term of up to five and a half years but will close on the third anniversary if the FTSE 100 Index has grown by at least 30%, when customers would receive their money back plus 30% gross interest. Otherwise, the investment continues to the end of its fixed term and investors will earn a return of 100% of the growth in the FTSE 100.
Recent research conducted by MORI Financial Services for Zurich asked respondents how they would react in a range of different scenarios; all of which involved the concept of risking a little to gain a lot.
The research revealed that investors are in cautious mood. When asked whether they would swap their FA Cup Final tickets for tickets to the Worthington Cup and the chance to win World Cup Final tickets, 48% stuck with their FA Cup tickets.
When it came to money, a wary 61% were not prepared to risk losing £200 of their £1000, for the chance to gain £2000.
The trend continued even when it came to leisure accommodation; given the opportunity to swap 3 star hotel accommodation for 2 star, and the chance to upgrade to 5 star, only 38% were prepared to take the chance to stay in a better hotel.
Kevin Ronaldson, marketing, customer and communications director at Zurich says; "Our research shows that many savers are wary of investing their money in stocks and shares after recent markets falls; however people are keen to take advantage of a possible upturn. The Zurich Guaranteed Account is the 'fair weather' investor's friend - it offers a toe back into the water to those investors who feel they'd like to try and benefit from an upturn in the market, without risking any capital. The worst that can happen is that customers will get their money back."
Investors with a minimum of £2,500, and a maximum of £250,000 to invest will find the the Zurich Guaranteed Account is available from both leading UK IFAs and the Zurich Advice Network. An 'early bird' bonus of 0.25% of the amount invested will be paid into the Account on all investments received before 3 May.
The availability period runs for six weeks; from 7 April - 19 May 2003, however it is available on a first-come, first-served basis and may well shut early.
For more information customers can ring: 0800 0839111 (from 3 April)
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Notes to Editors The Zurich Guaranteed Account is held by Dunbar Bank. The Account interest is linked to the FTSE 100 Index. Under current rules, interest will be paid net of basic rate tax and can be paid gross to non taxpayers.
Zurich Financial Services is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs about 68,000 people.
Findings are taken from a survey conducted by MORI Financial Services. Fieldwork was conducted between 30t January and 4tFebruary 2003 amongst a representative sample of 1088 adults aged 16+. Respondents were asked whether they would choose to keep option A, an item they own, or whether they would swap this for option B which is worth slightly less, but would give them the chance to upgrade to something to much better if they were to pick a diamond from a pack of cards. (A three to one chance).
