HSBC Investments in the UK is highlighting the latest Bank of England base rate increase for investors in its Guaranteed Capital Account.
As it prepared to launch tranches 13 and 14 for independent intermediaries and its own advisers, the bank said the hike of 0.25% (to 5.5%) will bring the income rate on its six-year option to 7%.As with the previous two tranches, Guaranteed Capital Account runs for 3.5 or six years, respectively, paying the UK base rate plus 1% or 1.5% on half of initial capital.
The other half of the investment is placed in a growth account offering a minimum capital return of 100%, plus 50% of the rise in the FTSE100 over the term.
Malcolm Prince, head of multi-tie investments at HSBC, said, “We have seen a real appetite this year from investors looking for products that combine income and growth with full capital protection, and the Guaranteed Capital Account suits these needs perfectly.”
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