HSBC Bank Malta is marketing Mixed Investment Deposit Account Solution (MIDAS), a new 50/50 structured product aimed at retail investors seeking yield above fixed term income rates.
Paul Steel, head of retail banking and wealth management for HSBC Malta, told SRP that the bank wants to have a product that can take advantage of the current interest rate environment but that also offers potential growth through investing in the equities market: "What makes MIDAS unique is that it combines an investment in the highly diversified World Selection Portfolio Options with the additional benefit of a one-year term deposit account that offers an exclusive interest rate," he said. "There are four or five competitors offering 4% and 5% on term deposits and we want to have a product with a term deposit angle to compete with those deposits.
Fifty-percent of the capital is placed in a term deposit account that runs for one year, paying 2.75% pa, and the remaining 50% is placed in one of the World Selection Portfolios, which comprises open-ended investments offering five different risk profiles.
The MIDAS deposit is denominated in euros and is available to all eligible Maltese and foreign investors. The minimum investment is set at €10,000.
In addition, HSBC Bank Malta is marketing a five-year capital-protected Medium Term Note (MTN) denominated in Australian dollars (AUD) that pays a coupon of 4.5% and a maximum of 6% pa, subject to the performance of the three-Month Australian Bank Bill Swap Rate (BBSW).
The MTN BBSW (AUD) II will be open until 5 April. Minimum investment is AUD2,500.