Santander UK's Cater Allen Private Bank is marketing a new six-year capital-protected deposit offering a 'cross tax year' allowance.
"Annual Locked In Return Plan 5 offers investors an alternative vehicle for their cash Isa (individual savings account) allowance with potential gains exceeding standard cash Isa rates," said Fernando Gasca (pictured), head of investments at Cater Allen Private Bank. "This is in an environment where the market is not expecting any interest rate rise until 2014, as stated by the futures on the Libor market."
The Cater Allen Annual Locked In Return Plan 5 will lock in a 6.50% gross of the original investment for each year that the FTSE100 index is at or above its strike level, offering a potential maximum return at maturity of 139% of initial capital over the full term, equivalent to 5.26% AER (variable). According to the bank, the lock-in feature "means that any cumulative returns will be paid out at maturity which avoids any potential gains from being wiped out by a drop at the end".
In addition, the product includes a 'cross tax year' feature allowing investors to take advantage of a double cash Isa opportunity by using their 2011/12 tax year allowance of £5,340, as well as their 2012/13 tax year allowance of £5,640. The bank said existing cash ISAs can also be transferred with no upper deposit limitation.
The plan will be open until 19 April. Minimum investment is £5,340.
This product is available in Recent Additions (UK).