Norwich Union GCP savings plan launched

A new savings plan which introduces investors to the property and stock markets is available from Norwich Union today.

The Guaranteed Capital Plan (GCP) also promises that a minimum of the original investment will be returned.

Designed to be held for a six-year term, investors' capital is assured return on maturity of each of three elements, but those who take out their money before maturity may face an early withdrawal fee.

Minimum investment in the plan is £3,000 and links investors' capital to the Halifax House Price Index, a one-year fixed rate deposit account and the FTSE 100.

In order to obtain growth without risk to the capital, the GCP splits the returns into the three elements, with 34 per cent being invested in a one-year fixed rate account, paying eight per cent gross and returns paid to the investor after 12 months.

A further 33 per cent is linked to the Halifax House Price Index, with the full investment being guaranteed after six years as well as 75 per cent of any growth in the index.

Investors will have 33 per cent of their investment linked to the FTSE 100 Index with the same conditions as the Halifax House Price Index element.