Zurich has launched another version of its Guaranteed Capital Account, a five-and-a-half year bank deposit account for cautious investors. Offering a money-back guarantee and interest linked to stock market growth, this latest version gives 125% of any growth in the FTSE 100 index over the period.
"These funds target a clear customer who needs to retain their capital but can afford to make use of their interest in the stock market," said Paul Wright, Zurich's investment management director. Other key features include an early maturity deal, with 30% gross interest if the index has grown by 30% or more on the third anniversary and also tax-free interest on the Isa element under current regulations. The account has a minimum investment level of £2,500 and a maximum of £250,000, with initial commission set at 3.25%.
Available through both advisers and Openwork, the new version is only open for a limited period, with 20 October set as the deadline for all applications. "We tend to launch about four or five of these products a year depending on what the market dictates," said Wright. "On this occasion we felt that with one of our schemes maturing in October, this product was ideal - particularly the way this one has been put together, offering investors 125% as opposed to 100% growth in the FTSE 100 over the period."
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