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
    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
  3. Great for
    UK based bank with FSCS protection
    A guaranteed rate of interest as stated for the full term of the product
    Quick and easy online application process
    But be aware that
    Applications and deposits only taken online
    Withdrawals are not permitted within the fixed term
  4. Great for
    A choice between monthly or annual interest
    FSCS Protected up to £85,000
    Quick and easy online account opening
    But be aware that
    Additional deposits, early account closure and withdrawals are not permitted within the fixed term

  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 £85,000
    • Provider/Product name eSaver Special

      Sainsbury's Bank

      eSaver Special

    • Interest rate (AER) 1.05% Variable
    • Min/Max opening amount £30,000 to £500,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    Tiered rates depending on your balance.
    £1-£999 0.50% gross/AER variable;
    £1,000-£14,999 0.75% gross/AER variable;
    £15,000-£29,999 0.90% gross/AER variable;
    £30,000-£500,000 1.05% gross/AER variable;
    £500,001+ 0.50% gross/AER variable
    No withdrawal restrictions
    For new and existing customers
    But be aware that
    The rate you get depends on your balance
    You must be aged 18 or over and a UK resident

  1. Great for
    Simple online application
    Opening and viewing your account online
    But be aware that
    After 12 months the rate will revert to the underlying rate, currently 0.65% gross/AER
    • Provider/Product name AA ISA - Easy Access Issue 9

      AA

      AA ISA - Easy Access Issue 9

    • Interest rate (AER) 0.86% Variable Includes Fixed bonus of 0.66% for 12 months
    • Min/Max opening amount £100 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Includes 12 month bonus
    Apply and manage your account online 24/7
    Transfer-in an ISA you hold elsewhere
    But be aware that
    The AA ISA is provided by OneFamily. Money in this AA ISA is deposited with Bank of Ireland UK
    No additional deposits or withdrawals during the fixed term. Partial ISA transfers out aren't available, transfers out in full only

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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