Bank of Scotland International has launched its 50:50 Five Year Sterling and US Dollar Capital Guara...
Bank of Scotland International has launched its 50:50 Five Year Sterling and US Dollar Capital Guaranteed Savings 'Bond 21'.
The bond guarantees customers their initial capital investment and gives them the opportunity to benefit from the growth potential of the stock market.
Half of the capital is invested for one year at a fixed rate of 12% per annum while the other half is linked to the performance of a "basket" of indices over five years.
At the end of the five years, customers will receive the remaining half of the capital and, in the case of the sterling bond, 83% of the average percentage increase of the basket of indices during this time. In the case of the dollar bond, customers receive 64% of the average percentage increase of the basket of indices.
David Ogilvy, head of product development at Bank of Scotland International, said: "The key word is that the capital is linked but not invested in the stockmarkets. The basket is made up of the Nikkei 225, the Swiss Market Index and the Dow Jones but we have chosen to exclude the FTSE 100 as we thought it was already at quite a high level."
Bank of Scotland International has aimed the bond at expatriates who want to invest without much risk as well as clients managing a wealth portfolio. Ogilvy said: "It's an ideal option for anyone coming out of a fixed rate who wants to dip their toe in the stockmarket but doesn't want the risk that goes with it."
The minimum investment level is £10,000 for the sterling account and $20,000 for the US dollar account.
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