Barclays Capital is marketing two new deposit accounts in its offshore bonds series for private banking and offshore investors. "We saw a lot of demand from advisers for the three-year guaranteed digital deposit account over the last couple of months," said director David Macdonald. "...One of the main reasons [...] is the fact that investors coming out of fixed rate accounts have to take a significant drop in return if they roll into a another fixed rate account." Guaranteed Digital Deposit Account is a three-year growth product with hard protection plus a 17% return provided index performance is not negative.
A second product, Five Year Guaranteed FTSE 100 Deposit Account, pays 200% of the rise in the underlying index, capped at a return of 150%.
Macdonald said the bank would create similar accounts denominated in the other key currencies if demand were sufficient.
The guaranteed return for both accounts is provided by Barclays Bank. Both deposits will be available within offshore bonds and onshore life wrappers. Minimum investment is £50,000 for both products.
These products will be available shortly in Recent Additions (UK).