Money News
HSBC has announced the latest tranche of its Guaranteed Capital Account - new investors under the upcoming deal being able to enjoy rates tracking Bank of England Base Rate plus up to 1.5%, for the term of their investment - top end rates currently equivalent to 6.75% gross (6.96% AER).
Available for terms over 3.5 or 6 years, the Guaranteed Capital Account combines income and growth in one product. It guarantees that the initial investment will remain secure, making it ideal for cautious investors looking for better returns than cash on deposit, but without the risks associated with equity based investments.
Minimum investment is £3,000 (maximum £999,999), which is split 50/50 to combine income earned on deposit with the growth potential of a leading stock market index.
The Income Fifty element is designed to generate income on 50% of the initial investment. Investors can choose to receive income each month into a nominated bank account, or rolled up and paid on maturity.
Meanwhile, the Capital Growth Fifty element is designed to exploit the growth potential of the FTSE 100 Index. Providing no withdrawals have been made by maturity, the investor will receive back this part of the deposit plus 50% of any growth in the Footsie during the term of the investment. If there has been no growth the investor will still receive the deposit in full.
Investors can make withdrawals at anytime, subject to a minimum of £250 and maintaining a minimum balance of £1,500.
22 February 2007 © Moneyextra.com
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