Portugal's Caixa Geral is marketing a new tranche in its TaxaMix deposit range linked to Euribor, which almost doubles the headline rate offered by the tranche sold in summer last year.
Caixa TaxaMix Maio 2014 is a three-year guaranteed income deposit linked to three-month Euribor. The product pays quarterly coupons of 4% pa (up from 1.5% pa in the previous tranche) for the first year, and quarterly coupons equal to the underlying plus 1.5% pa for the remaining term. Coupons are floored at 4.25% and 4.5% pa; and capped at 5.25% and 5.5% pa for the second and third years, respectively.
"TaxaMix has always been well received," said London-based Caixa Geral treasurer Francis Infante. "This year, the concept is even more important, because the potential ECB rates hike gives TaxaMix an advantage over fixed-rate deposits: it gives our customers the opportunity to take advantage of higher interest rates in the future."
Infante said the headline rates are higher than last year, mainly because of higher market rates, but also due to increasing competion for funds. "We have noticed that some of our competitors are starting to offer similar products," he said.
Caixa Geral's Spanish subsidary Banco Caixa Geral is marketing a Spanish version of the product. Depósito Interés Mixto Plus is also a three-year capital-guaranteed income product linked to the three-month Euribor. The product pays quarterly coupons equal to 3.75% pa for the first year and quarterly coupons equal to the underlying plus 1% pa for the rest of the term. Coupons are subject to a floor of 4% pa and capped at 5 % pa.
Caixa TaxaMix Maio 2014 will be open until 27 May, while Depósito Interés Mixto Plus will be available until 22 June. Minimum investment for both products is €1,000.
These products are available now in Recent Additions (Portugal and Spain).