Abbey National Offshore launches ‘Offshore Choices’

Published October 8th, 2000 - 02:00 GMT

Limited edition, five year, guaranteed, equity-linked deposit account available in three currencies with the choice of annual payment or growth 

 

Abbey National Offshore has launched its new five year Offshore Choices deposit account which enables customers to benefit from growth in leading stock markets but with the capital 100 percent guaranteed. Sterling, US Dollar and euro denominations are available with the ‘choice’ to receive returns annually or upon maturity. 

 

Total returns of up to 65 percent over the term are possible, with performance determined by the annual growth in the equity index of each currency. Offshore Choices is a strictly limited offer which closes on 1st December 2000, with the term starting on 

8th December 2000. 

 

Commenting on the launch of Offshore Choices, Michael Brighton, General Manager, Abbey National plc, Dubai Representative Office said: “Guaranteed products have proved popular with customers in the past. They can potentially achieve a better return than that available on an ordinary deposit account but without the downside risks to their capital that a direct stock market investment would have. The choice of annual or growth returns makes this an attractive account for investors, whatever their currency requirements.” 

 

Offshore Choices key features: 

Available in three currencies: Sterling, US Dollar and euro with capital guaranteed. 

· Sterling - five year term with returns linked to the FTSE 100 Share Index. 

Growth option: returns capped annually up to a maximum of 12.0 percent with four weeks averaging of the Index at each year end. Maximum return is 60.0 percent, payable upon maturity. 

Annual payment option: interest calculated and paid away at each year end with a maximum annual interest rate of 10.0 percent. 

 

· US Dollar - five year term with returns linked to the S&P 500 Index. 

Growth option: returns capped annually up to a maximum of 13.0 percent with four weeks averaging of the Index at each year end. Maximum return is 65.0 percent, payable upon maturity. 

Annual payment option: interest calculated and paid away at each year end with a maximum annual interest rate of 11.0 percent. 

 

· euro - five year term with returns linked to the EuroStoxx50 Index. 

Growth option: returns capped annually up to a maximum of 10.0 percent with four weeks averaging of the Index at each year-end. Maximum return is 50.0 percent, payable on maturity. 

Annual payment option: interest calculated and paid away at each year end with a maximum annual interest rate of 8.5 percent. 

 

Minimum deposits are £5,000, $7,500 or Euro7,500, respectively, with maximum deposits are £2 million, $3 million and Euro3 million. 

 

Special transfer facility 

A ‘bed and breakfast’ facility will be offered to customers selecting the growth option to enable them to use their full capital gains tax-free allowance each year when moving from one jurisdiction to another. There is no bed and breakfast facility on the annual payment option. 

 

Early encashment 

Early encashment is only available after year one. 

Growth option- the interest paid will be the total growth locked-in less 180 days interest penalty at the prevailing top tier rate on the Offshore 180 Day Notice Account, USD Call Account and euro Call Account as appropriate. If no locked-in growth has been achieved, the penalty will be deducted from the capital. 

 

Annual payment option - early encashment is possible only at each year end. Interest paid will be the total locked in less 180 days interest at the prevailing top tier rate on the Offshore 180 Day Account, USD Call Account and euro Call Account as appropriate. If no locked-in growth has been achieved, the penalty will be deducted from the capital. – (Albawaba-MEBG) 

 


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