A savings bond, linked to the stock market, has been launched by Nationwide Building Society.

The guaranteed equity bond (GEB) has growth linked to the FTSE 100 , Nikkei 225 and DJ EuroSTOXX 50 indices.

Guaranteed to return the investor's original deposit after five years, the savings bond also offers the greater of ten per cent guaranteed growth or up to 55 per cent of the growth in the value of the indices.

A bonus applies for those who invest in the savings bond early. For customers making an initial investment before Christmas Eve, a bonus of 0.4 per cent will be paid.

Those investing between December 28th and January 7th will receive 0.3 per cent bonus while those depositing their money between January 9th and January 21st will get 0.2 per cent.

People who want to invest in the stock market without running high risks will find this savings bond ideal, according to the managing director of Nationwide Investments , Clive Parkinson.

The Nationwide GEB not only offers peace of mind to the investor by providing a capital guarantee but also goes one step further, he says, pointing out that the return will always more than the initial investment amount.

Nationwide's GEB is linked to three indices which provide customers with exposure to overseas markets and the potential to benefit from the performance of a wider range of companies according to Mr Parkinson.

He says this, as well as additional guarantees offered by Nationwide, has led to the savings bond's increasing popularity.