Capital Protected Market Linked Deposit (International Equities)

With the Bank of England Base Rate at an all time historic low, it’s becoming increasingly hard for savers to find a home for their money with an attractive rate of return.  At the same time, volatility in the stock markets can make many investors wary about investing directly in shares.

Our latest Market Linked Deposit account could be an alternative solution. It has been designed to offer you a simple way to benefit from the growth potential from international equities whilst offering you the potential to receive a better return than you would receive through current cash deposit rates. There’s also added peace of mind that your capital is 100% protected at maturity.

This Market Linked Deposit account gives access to three major international equity markets by linking your deposit to the performance of the FTSE 100, S&P500 and Dow Jones Eurostoxx 50 indices. 

Key features:

• You will receive a maximum return of 40% gross* paid at the end of the term.  If the increase in the basket of indices gives you a return in excess of 40% growth you will not participate in any such excess.  Accordingly, the maximum return you can achieve is your Deposit Amount plus a positive return of 40% of your Deposit Amount, before tax.
• 100% capital protection of your Deposit Amount at maturity.
• A four year term.  No additions or withdrawals may be made during the term of your Market Linked Deposit account.
• Minimum Original Deposit Amount of £10,000.  No maximum Original Deposit Amount. 
• You will receive Early Deposit Interest of 0.5% per annum gross AER** on any funds from the date the funds are cleared (1 October 2009 at the earliest) until the Market Linked Deposit Start Date of 6 January 2010.  Applications received on or before 1 October 2009 will have funds cleared on 1 October 2009 at the earliest and will earn the Early Deposit Interest at a rate of 0.5% per annum gross AER from the date the funds have cleared.  For any applications received after the 1 October 2009 we will pay the Early Deposit Interest from the date your funds are cleared with us.  The Original Deposit Amount plus any Early Deposit Interest then rolls over into your Marked Linked Deposit account on the Market Linked Deposit Start Date and forms the Deposit Amount, which will form the basis when calculating any return.
• At maturity, in addition to your Deposit Amount, you may also receive a return subject to a positive performance of the basket of the three indices.
• The closing date for applications is 18 December 2009.  Please note the closing date may be earlier if the maximum subscription is reached.  We may also be unable to accept your application if this happens.
• How your return is calculated
• About the FTSE 100 Index
• About the S&P 500 Index
• About the Dow Jones Eurostoxx 50 Index

* Gross means the contractual rate of interest payable before the deduction of income tax at source.  Tax is applied at the rate specified by law, currently 20%.

**AER stands for Annual Equivalent Rate and illustrates what the interest would be if interest was paid and compounded once a year.  You will be able to use this AER to compare the Market Linked Deposit with other products displaying an AER.

Terms and conditions apply, please ask to see a copy of the brochure for full details.

Next steps

This product is only available to existing Bank of Scotland Private Banking or Bank of Scotland Investment Service clients. If you are already a client, please contact your Relationship Manager or Client Manager.

If you are not already a Private Banking client but are interested in becoming one, or would like more information on the Market Linked Deposit account, please call 0870 129 9797.

The closing date for applications is 18 December 2009.  Please note the closing date may be earlier if the maximum subscription is reached.  We may also be unable to accept your application if this happens.

Key dates;

Closing date for applications - 18 December 2009

Market Linked Deposit Start Date - 6 January 2010

Maturity Date - 13 January 2014