THOSE buying shares in the Lloyds Banking Group could make £200 in a year from the first £1,000 they invest, it has been predicted.
The government has confirmed plans to sell at least £2 billion worth of shares to the public next spring.
As part of this, it will offer two key incentives, billed as a reward to the taxpayers who helped bail out the bank in the first place.
The first is a discount of 5 per cent on the market price of shares and the second one bonus share for every 10 purchased and held for a year - essentially 10 per cent extra free.
And once the expected dividend is factored in, a £1,000 investment could be worth an extra £200 in just 12 months, said Hargreaves Lansdown senior analyst Laith Khalaf.
"Based on £1,000 invested, you could expect a £50 price discount, an anticipated £50 dividend in 2016 - if the market price remains at today's level at the time of the sale - and a further £100 in bonus shares a year down the line," he said.
"Of course the dividend is not guaranteed, but that still looks like a pretty attractive package."
The Government has introduced measures to avoid wealthier investors snapping up all the shares.
The bonus share offer will be capped at £200, meaning no further incentive on shares worth more than £2,000.
