Norwich Union has launched a new unitised with-profit investment bond "Celebration 2000" which provides underlying guarantees with the prospect of excellent real returns. The bond offers a minimum rate of return from 5.50 to 9.25 per cent. The rate depends on the amount of the investment.

The minimum investment is £5,000 or £10,000 where a regular income is required. A bonus is paid on the first anniversary which ensures a minimum rate of return for the first year.

During the first six years, an administration charge of 0.5 per cent applies. This amount is reimbursed by 50 per cent after the six-year period and paid in the form of additional units. Annual returns are declared net of a 1 per cent management charge. Penalties apply to encashments on a scaled basis.

Income may be taken from the bond monthly, half yearly or yearly but is subject to a minimum of £600 annually.