Barclays Capital unveils latest index-linked deposit accounts

As it has in the past, Barclays Capital said that it is willing to create similar accounts denominated in other major currencies “where demand is sufficient”.

Both accounts require a minimum investment of either £20,000 or an equivalent in another currency, Barclays said.

David Macdonald, Head of Retail Insurance Solutions at Barclays Capital, said euro and sterling structured deposit products “continue to look attractive” in the current investment environment.

For sterling investors, he added, Barclays Capital’s decision to launch a ‘digital’ style payoff “was driven by adviser demand for deposits with potentially above-market returns in an easy-to-understand format”, while for euro investors, market conditions had enabled the bank to re-launch a popular three-year growth-style product “with improved terms”.

The new accounts are:

• The Equity Index-linked Sterling Structured Deposit Account, which is designed to give investors three-year, 11-month exposure to the FTSE 100 Index

• The Equity Index-linked Euro Structured Deposit Account, offering three-year access to the EURO STOXX 50 Index

Both are available to investors now through 29 June.

22% coupon

In addition to the full return of capital on maturity, the Sterling Account offers a 22% coupon if the index is at least as high on 29th May 2015 as it is on 30th June 2011, Barclays said in a statement yesterday.

For those invested in the euro-denominated Equity Index Linked Euro Structured Deposit Account, meanwhile, Barclays said it is offering “the rise in the EURO STOXX 50 Index after three years capped at 22%, plus a return of capital at maturity, regardless of how the index has performed”.

Investors interested in the products may access them most offshore life bond providers, based predominantly in Isle of Man, Dublin and Channel Islands, and certain UK onshore life insurance company wrappers, Barclays Capital noted. 

Further details and fact sheets on the products may be found at www.BarclaysOffshoreSolutions.com.