The FTSE Range Bond, says the Bank, is the latest in a series of innovative fixed term deposit accounts from RBSI. The Bond offers customers the opportunity to earn a maximum of 14% interest on their capital investment over the two year period, based on the FTSE 100 Index remaining within a pre-set range. Customers will accrue and lock-in interest at a rate of 7% per annum for each day that the FTSE 100 Index remains within a trading range of between ­3 to +10% of its level on the start date. The starting level for the first year will be determined as the
closing level of the FTSE 100 Index on 25 January 2002. An additional advantage is that a new ­3% to +10% trading range will be set at the new start level for year two, ensuring investors are not disadvantaged if the Index has moved outside the trading range at the end of the first year.

Peter Shirreffs, Director, Retail Banking, RBSI, said: "If, as seems likely, the UK prepares for early entry into the euro, then we can expect UK interest rates to reduce to even lower levels than at present during the next two years. In this environment, an investment offering capital security and up to 14% interest at maturity should be extremely
popular with investors."

"The fact that the FTSE Range Bond matures after only two years should also be appealing to investors who do not want to tie-up their capital for long periods," added Mr. Shirreffs.

The offer is available to investors for a strictly limited period, on a first come first served basis, with a closing date of 22 January 2002. The offer will close earlier if fully subscribed. Deposits are accepted in sterling only. The account is located offshore and all income will be paid gross of tax at maturity.

Money deposited in the FTSE Range Bond prior to the start date will earn interest at competitive tiered rates, which will be added to the initial deposit. Customers do not have access to invested funds during the two year period and they are advised not to deposit funds they will need during the term of the account.