HSBC launches product for savers after interest cuts

HSBC recently launched its Equity Linked Deposit (ELD), a new investment opportunity for savers who have been negatively affected due to recent cuts in interest rates.

The Equity Linked Deposit is a term deposit account in Maltese Lira, which provides capital security. The ELD offers an attractive guaranteed income of 10% on half the capital invested after 18-months, which is equivalent to 6.56% p.a. Those wishing to invest in the ELD can do so until 14 November 2001 and the minimum deposit is Lm 2,500.

The ELD is a 3-year term deposit, which is split into two 18-month terms. After the first 18-month term, half of the capital invested plus a guaranteed 10% gross interest will be paid. The remaining balance will be tied till the end of the 3-year term. At the end of the 3 year term the remaining balance will be paid back plus a rate of return which will reflect a 30% participation in any growth of the Swiss Market Index (SMI). This bonus will be calculated as 30% of the growth of the SMI over the whole of the 3-year period on the remaining balance in the last 18 months.

Pauline Azzopardi, Product Manager at HSBC, said "This is an excellent opportunity for those who would like to invest in a cautious manner. Recent cuts in interest rates, which have been of great benefit to home buyers, have had negative effect on savers. ELD remedies this situation by offering a guaranteed 10%. interest on half the capital invested after the first 18 months. Other advantages include the fact that there is no capital gains tax liability and also no exchange risks on the capital."

All those who would like more information on HSBC’s Equity Linked Deposit account can contact HSBC on freephone 0800 77 44 44 or visit any HSBC branch in Malta and Gozo. Any bonus and interest are subject to withholding tax for Maltese residents.