A new investment opportunity will be available from Nationwide from next week.

The new Guaranteed Equity Bond (GEB) will have growth linked to the FTSE 100 index, making it ideal for people who are worried about the risks associated with investing in the stock market.

People who want to be saving money over a longer term will be interested in this competitive savings bond, which will be launched next Monday.

Investors in the savings bond are guaranteed that on top of receiving all their invested capital, they will have returns of 80 per cent of any FTSE 100 index growth at the end of the five-year term.

According to the managing director of Nationwide Investments , Clive Parkinson, investors could potentially from stock market growth whilst avoiding any risk of losing their original investment. Because the savings bond is operated through a life company, returns are paid after tax. This means that, for basic and higher rate tax payers, the return is equivalent to 100 per cent, Mr Parkinson commented.

People who invest early in this savings bond will receive an additional bonus, starting from 0.40 per cent until August 20th. Investors that start saving money between August 22nd and September 3rd will receive a bonus of 0.30 per cent. If you would like to invest in the savings bond between September 5th and September 17th, a 0.20 per cent early investment bonus applies.

This bonus will be added to the original investment on the start date of the savings bond term, which is October 18th.