UK finance group Bank of Scotland International has introduced a pound sterling and US dollar capital guaranteed savings 'Bond 20' across three- and five-year terms.
The two products offer a guarantee on the customer’s initial capital investment while giving them the opportunity to benefit from the growth potential of the stock market across different terms.
The minimum investment amount is GBP10,000 for sterling accounts and $20,000 for the US dollar accounts. The account will begin on March 28, 2007 with the closing date for applicants on March 14, 2007.
The three-year sterling capital guaranteed savings ‘Bond 20’ is index-linked to the performance of the Nikkei 225 over three years. After the three years, the capital is returned, along with 107% of the average percentage rate of increase of the Nikkei 225 during this time.
The three-year US dollar capital guaranteed savings ‘Bond 20’ is index-linked to the performance of the S&P 500 over three years. The return of the original capital along with 80% of the average percentage rate of increase of the S&P 500 during this time, subject to a maximum level of 32% gross, is added into the customer’s account at the end of the three years.
The five-year sterling capital guaranteed savings ‘Bond 20’ and The Five Year US Dollar Capital Guaranteed Savings ‘Bond 20’ are 50:50 accounts. At the end of the five years, sterling customers will receive the remaining half of the capital with 86% of the average percentage rate increase of the index. US dollar customers will also receive the remaining half of the capital, along with 81% of the average percentage rate increase of the index.
The three-year ‘Bond 20’ accounts will mature on March 28, 2010 while the five-year ‘Bond 20’ accounts will mature on March 28, 2012.