Compare guaranteed equity bonds

Guaranteed Equity Bonds allow savers to potentially benefit from stock market growth without risking their initial deposit. They are more complicated than standard savings products so we would suggest that you only invest once you understand how they work.

Sorry, we don't have any guaranteed equity bonds available at the moment. Why not check out some of our other deals below.

  1. Great for
    UK based bank with FSCS protection
    A choice between monthly or annual interest
    Supported by a dedicated UK based customer service team
    But be aware that
    Additional deposits and withdrawals are not permitted within the fixed term
  2. Great for
    Choose between annual interest of 1.62% Gross/AER fixed or monthly interest of 1.61% Gross/1.62% AER fixed
    Viewing your account online with Tesco Bank's secure Online Banking service
    But be aware that
    One single deposit within the first 30 days of account opening. Once you put your money in you can't close your account early or get your money out until the end of the term.
    Your interest will be paid into an account nominated by you.
    To apply you must be a UK resident and 18 years of age or over.
  3. Great for
    Fast and simple online application
    FSCS protection for your deposit
    All deposits used to support the growth of enterpreneurial businesses in the UK
    But be aware that
    Additional deposits, early account closure and withdrawals are not permitted within the fixed term
  4. Great for
    Fast and simple online application
    FSCS protection for your deposit
    All deposits used to support the growth of enterpreneurial businesses in the UK
    But be aware that
    Additional deposits, early account closure and withdrawals are not permitted within the fixed term

    • Provider/Product name Internet Saver

      Tesco Bank

      Internet Saver

    • Interest rate (AER) 1.00% Variable Includes Fixed bonus of 0.60% for 12 months
    • Min/Max opening amount £1 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    1.00% Gross/AER variable (includes a fixed bonus of 0.60% for 12 months)
    Opening and managing your account online
    Opening an account with just £1
    But be aware that
    Rate includes a bonus, you may want to move your money at the end of this period
  1. Great for
    Unlimited payments and withdrawals with no penalties
    7 day service and choice of monthly or annual interest
    Part of Renault’s global banking group
    But be aware that
    RCI Bank is part of a French banking group and the first €100,000 equivalent is protected by the French deposit guarantee scheme, rather than by the UK FSCS scheme which protects the first £75,000
  2. Great for
    Opening an account online with a low minimum opening balance of just £1
    Managing your savings online 24/7 & making unlimited withdrawals with no charges, penalties or notice periods.
    A choice of annual or monthly interest – Annually paid in March or monthly on the first business day of each month.
    But be aware that
    After 12 months the rate will revert to the underlying rate, currently 0.25% gross/AER
    Online Saver is provided by Bank of Ireland UK

  1. Great for
    Transferring existing ISA balances
    A choice between monthly or annual interest
    UK bank with FSCS protection up to £75,000

Guide to Guaranteed Equity Bonds

What is a guaranteed equity bond?

A guaranteed equity bond is a way for savers to gain exposure to possible gains in the stock market without risking their initial deposit.

A typical bond may be linked to a stock market index such as the FTSE 100 index. If the index rises over the term of the bond, savers will benefit – but not necessarily by the full amount the index has risen.

The bond’s value at maturity is likely to be dependent on a complicated formula, based perhaps on the index’s level at the start, and its average value over the final year of the bond.

On the other hand, if the index the bond is linked to falls in value over the term, savers may simply get back the capital they invested at the start.

What are the advantages?

A guaranteed equity bond can be a way of investing in the stock market without taking the risk that all the original capital could be lost. Some offer total capital protection so even if the market falls you will get your original investment back at the end of the term. Others offer more limited protection so this is worth checking when comparing products.

When interest rates on normal savings accounts are low, guaranteed equity bonds can appear more attractive as their potential returns are higher.

What are the disadvantages?

Guaranteed equity bonds are usually very complicated, and the formulas used to work out gains can be hard to understand and compare.

The capital protection comes at a price, so savers will not get the full benefit of any increase in the underlying index.

Savers are unlikely to benefit from dividends paid to normal shareholders, although this is also the case for those who invest in a fund which simply tracks a certain index.

And even if all the original capital is guaranteed, its value may have been eroded by inflation.

Who do they suit?

Guaranteed equity bonds can be a way of investing in stock markets with less risk. But these products can be very complicated, and you should only put money in if you understand clearly how any gains are calculated and what losses you could face.

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