With effect from Monday 31 March 2008, Nationwide will offer a new tranche of Legal & General's Capital Guaranteed Multi-Index Equity Bond (GEB), under the distribution deal that commenced last month.

The L&G Capital Guaranteed Multi-Index Equity Bond 2 is a six-year deposit-based GEB that guarantees to return the original capital and provide a minimum return of at least 12 per cent (1.90 per cent AER) if held until maturity.

If stock markets grow by more than 12 per cent over the six-year term, the investment will provide up to 70 per cent of any growth (after averaging) in the value of a basket of three of the world's leading stock market indices – the FTSE 100, DJ EuroSTOXX 50 Index and Nikkei 225 Index.

The minimum investment is £500 and there is no maximum investment limit.

Customers who invest early will benefit from a pre-investment rate of four per cent gross AER for any investment received before the end of the offer period on 23 May 2008 and this will be added to the original investment.

The previous Legal & General GEB offered by Nationwide will be closed to new business on Friday 28 March 2008.

Robin Bailey, Nationwide's investments director, says, ‘The continuing uncertainty in the stock market makes many would-be investors wary. A guaranteed equity bond provides a safe haven for their savings, while at the same time allowing them to benefit from any potential stock market growth.

‘By teaming up with Legal & General, we're able to offer a GEB that allows customers to invest from as little as £500 and guarantees to return the original investment plus a minimum of 12 per cent over a six-year term, but with the potential for even greater returns. The return is always going to be more than the original amount invested if held until maturity.’