Cater Allen Private Bank has launched a FTSE 100 linked structured product plan, offering up to 30% return on maturity.
The Cater Allen Capital Guaranteed Defined Return plan offer investors a choice of two terms.
The 5 ½ year term will guarantee the original investment plus a return equal to 30% of the investment, if the FTSE 100 index increases by any amount at from its initial index level.
While, the 3 ¾ year term will guarantee the original investment plus a return equal to 15% of the investment, if the FTSE 100 index increases by any amount at from its initial index level.
If the final index level is lower or the same as the initial index level, investors are guaranteed to receive their original investment plus a return equal to 0.50% (5 and half year term) or 0.25% (three and three quarter year term).
"With recent economic reports suggesting that there 'R' now stands for recovery rather than recession, an investment into these capital guaranteed products, which only require a one point rise in the FTSE, represents great value for money," says Ricardo Marin-Bataller, head of structured products at Cater Allen Private Bank.
"This is also the first product we have offered where the return might be subject to Capital Gains Tax rather than Income Tax. This might benefit investors, because the taxable amount on any gains can be less than income tax rates."
The deadline for investment in the new structured product is 17th July, 2009 and has a minimum investment level of £7200.
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