New Capital Guaranteed Deposits From Lloyds TSB Offshore

by Carla Johnson, Investors Offshore, London

27 October 2006

IOM-based Lloyds TSB Offshore is offering minimum returns of 5% or 15% plus complete capital security with its latest Equity-Linked Guaranteed Offshore Limited Edition Deposits if they are held to maturity.

Gains may be even higher, depending on the performance of stock markets over the two-and-a-half or five-year terms of the deposits. No matter how stock markets perform, however, these deposits still guarantee a return.

There are two different OLEDs to choose from:

• A sterling deposit for a two-and-a-half year term linked to the UK stock market and offering a minimum return of the original investment plus 5%;
• A sterling deposit for a five-year term linked to a ‘basket’ of stock market indices in the UK, US, Europe and Japan, offering a minimum return of the original investment plus 15% (AER 2.83%)

Chris Sutton, Expatriate Banking Director at Lloyds TSB Offshore, says: “As well as complete capital protection, the guaranteed returns in excess of the sum invested will always be paid at maturity - even if any or all of the relevant stock markets perform badly over the term of the deposit. These deposits represent a great opportunity for expats to participate in the potential of stock markets with no risk attached and with guaranteed returns.”

With the two-and-a-half year sterling deposit, the return at maturity in addition to capital will be the total of the percentage rises and/or falls of the FTSE 100 index of leading UK shares in each six-month period during the full term of the deposit. The percentage rises and falls are limited to +/- 4.6% in each six-month period, so the maximum return at maturity is 23%.

With the five-year sterling deposit, returns are linked to an equally-weighted index basket comprising: FTSE 100, S&P 500, FTSE 100, Dow Jones EURO STOXX 50sm and Nikkei 225 Index. The return at maturity will be the greater of the original capital sum plus 15% or, the original capital sum plus 110% of the average positive performance of the index basket.

Minimum investments of GBP10,000 for these OLEDs must be received by Lloyds TSB Offshore by 13 December 2006 at the very latest. Early depositors receive 4% interest until 20 December 2006.

The Isle of Man branch of Lloyds TSB Offshore Limited is licensed by the Financial Supervision Commission to conduct banking and investment business and is registered with the Insurance and Pensions Authority in respect of general business. PO Box 8, Victory House, Prospect Hill, Douglas IM99 1AH.

Lloyds TSB Offshore Limited is incorporated in Jersey. Registered Office and principal place of business: PO Box 160, 25 New Street, St Helier, Jersey JE4 8RG. Registered in Jersey, number: 4029. Regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991, and investment and general insurance mediation business under the Financial Services (Jersey) Law 1998.

Recommended