Legal & General has launched its latest structured investment product, targeting a minimum of 13 per cent after six years.

The insurer’s ninth issue of its 6 Year Growth Deposit Bond is for investors willing to commit between £500 and £5,340 (maximum cash ISA limit) for the period, although investors may deposit more if making a cash ISA transfer.

Investors’ capital will be returned at the end of the six-year period plus a minimum return of either:

 - 13 per cent,
or
- the percentage growth of the FTSE 100 index up to 50 per cent of their original investment.
(The return investors will receive will be the greater of the two.)

Under the terms of this product, L&G will assess the ‘growth’ in the FTSE 100 using the initial level at the close of business on 26 October 2011 and the average level in the last 12 months of the investment between 26 October 2016 and 28 October 2017.

Investors’ cash will be on deposit with Royal Bank of Scotland during the investment period, meaning all liability to repay the capital sum is with RBS and not Legal & General.

Should RBS become insolvent, investors will be protected under the Financial Services Compensation Scheme (FSCS) limits up to £85,000. The closing date for new investment is Friday 7 October 2011.

Investors should note that financial advisers selling this product may be eligible to receive 3 per cent commission from Legal & General for recommending the product.