Legal & General Group Plc : Legal & General raises payouts on Early Bonus plan again

Early Bonus Plan 4 is available for investment until Friday 24 February 2012.  It has a six year term, which ends on 15 March 2018. However, the kick out feature means that investors may receive their capital, plus a bonus payment, at any one of five trigger points during the investment period (see early bonus payment table below).

The Plan offers repayment of capital plus a bonus (up to 66.0% of the initial investment) as long as the final level of the FTSE 100 Index is equal to, or better than, the initial FTSE 100 Index level at the investment start date (or strike date) and provided the investment is held until maturity and the early bonus payment is not triggered.

Legal & General's Head of Business Development, James Harrington said; "More than ever investors are seeking good upside potential on their investments to help to keep pace with inflation. The added flexibility of the kick out feature activation if the FTSE 100 Index begins to recover is proving particularly attractive to those who would perhaps like to access their investment if investment markets pick up.  With Early Bonus Plan 4 there are five anniversaries for the kick out feature to be activated, triggering a payment and returning the original investment."

The early bonus payment feature. Early Bonus plan 4

End of year	1	2	3	4	5
Bonus	11%	22%	33%	44%	55%
Anniversary Date	15/03/2013	17/03/2013	16/03/2013	15/03/2013	15/03/2013

The early bonus payment feature will be activated if the FTSE 100 Index is at or above its starting level at any of the anniversaries. If this happens the Plan will close and pay a set bonus as shown in the table above.

If the early bonus payment feature is activated, the investment will close and there is no option for the investment to continue.

Capital is not protected with this Plan and there is the potential that some or all of the original investment may be lost;
* If the FTSE 100 index has fallen by less than 50% (that is 0% - 49%) of its starting level at the end of the five years, the original capital invested will be returned in full with no bonus.
* However, if the FTSE 100 index has fallen by 50% or more (that is 50% - 100%) of its starting level at the end of the five year term, the original capital invested will be reduced by 1% for each 1% that the final level of the FTSE 100 index is below its starting level.

The minimum investment is £3,000 and the maximum for new ISA applications is £10,680. There is no maximum for ISA transfers. The last date for ISA transfers is 10 February 2012 to allow time for the completion of transfer before the offer close date. The closing date for all other applications is 24 February 2012.

Commission is 3% of the sum invested. Full details for this product are available on the Legal & General dedicated adviser website www.landgstructuredproducts.com.

Advisers can also contact Adviser Direct on 0845 273 0008 (Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  Or e-mail [e-mail]

Notes to editors The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
1. The contract start date is 15 March 2012 and the end of the fixed term is 15 March 2018.
2. This plan is not suitable for customers who may need to access their money before the six year maturity or who may be seeking a definite return.
3. The growth of the FTSE 100 Index will be measured using the level of the Index at close of business on the start date and the final level of the Index on maturity date and on each anniversary.
4. If the Index level on one of the early bonus anniversary dates (see below) is at, or above the initial Index level, the Plan closes early paying back the original investment plus a set bonus. The early bonus anniversary dates are shown in the table above. Abbey National Treasury Services plc aim to pay us any applicable returns within seven working days following the anniversary date.
5. The investment should be held until maturity but can be encashed or, if held as an ISA, transferred to another ISA provider at any time. If this happens the investor may get back less than they originally invested.
6. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc rated AA- Standard & Poors). In the event that these entities become insolvent and therefore unable to meet their commitments, the investor could lose some or all of their original investment and any applicable bonus.
7. This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.