Capital guaranteed bond

A Lifelink Capital Guaranteed Bond (Tranche 2017) with a guaranteed interest rate of 6.6 per cent per annum for the first two years, is on offer at Bank of Valletta.

This product is a 10-year unit-linked life policy that guarantees the return of capital invested if held to maturity and is available in Maltese lira and euro.

It provides two types of coupons paid annually. In the first two years, the coupon is guaranteed at the rate of 6.6 per cent per annum. In the next eight years, the coupon is variable up to a maximum of 8.5 per cent per annum. It is linked to the performance of a basket of 25 shares.

From year four, the variable coupon has a minimum guarantee of 50 per cent of the highest previous variable coupon.

The minimum investment is €5,000 or Lm2,000. Clients taking up this product have the option of appointing one or more beneficiaries who will be entitled to receive the death benefit or other benefits under the policy.