A new Guaranteed Equity Bond (GEB) has been launched by Nationwide yesterday.

The savings bond will have growth over five years linked to the FTSE 100 , Nikkei 225 and DJ EuroSTOXX 50 indices.

The original investment in the savings bond is guaranteed to be returned. The investor will also receive either ten per cent guaranteed growth or up to 50 per cent of growth in the value of the indices, whichever is the greater amount.

GEBs are ideal for people who want to invest in the stock market but are worried about the associated risks, says Clive Parkinson, managing director of Nationwide Unit Trust Managers.

He says the Nationwide GEB offers peace of mind to the investor as it also provides a capital guarantee, so the return is always more than the original amount invested.

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, Mr Parkinson points out.

Early investors who open their savings bonds before November 12th will receive an additional 0.4 per cent bonus.

Those opening savings bonds between November 14th and November 26th will receive a 0.3 per cent bonus, while a bonus of 0.2 per cent will be paid to those making an investment between November 28th and December 10th.