New tracker bond launched by First Active

First Active has launched a new combination bond with a one-year deposit account paying 7%.

The 'Combination Bond Series 12' splits the investment, with 25% of the capital placed in a one-year fixed-rate deposit account paying a gross rate of 7% and the remaining 75% invested in a tracker bond linked to 50 leading world companies.

This can offer customers the potential to earn up to a maximum 55% gross over the investment period of five years and 11 months, First Active said.

Investors' capital is 100% protected with the tracker bond.

The minimum investment is €2,000 for Irish residents, while non-Irish residents require a minimum opening balance of €6,500 and is available from until May 28, 2004.

Brendan O'Hora, Head of Marketing at First Active, said: "The rate of return for the deposit account is very competitive and it also allows the customer to access a quarter of the investment in the short term.

"The tracker provides the customer with the potential for higher returns with peace of mind that the capital is 100% secure."