Barclays Capital has unveiled two guaranteed deposit accounts providing investors with either three or five year protected access to the FTSE 100 index.
The Three Year Guaranteed Digital Deposit Account and Five Year Guaranteed FTSE 100 Deposit Account are designed as investment links for use within offshore bonds and UK wrap accounts.
Available from 2 January to 26 February 2009, the products are the latest in Barclays Capital's Structured Deposit Series for Offshore Bonds.
Minimum investment for both accounts is £50,000 and investors are guaranteed a full return of their initial capital investment provided the product is held until its full maturity.
"Due to adviser demand for a short-term product, we have decided to expand our offering to sterling investors to include the Three Year digital payoff," said David Macdonald, director at Barclays Capital.
He believes this type of investment is simple to explain to potential investors, as clients either get an above market-rate of interest if the index is higher in three years time, or else receive no interest if the markets are lower.
"With UK base rates currently sitting at 2% and talk of further rate cuts, the opportunity and cost of investing in this style of product makes it compelling," he said.
The Five Year Guaranteed FTSE 100 Deposit Account has been the core sterling denominated offering throughout 2008 and remains popular with advisers seeking a longer-term and more traditional growth payoff for their client base, said Macdonald.
While the accounts have only been available in sterling, Barclays Capital can create similar accounts denominated in other key currencies if demand is sufficient, he added.
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