Offshore Bond Offers 14% With Guaranteed Capital

by Carla Johnson, Investors Offshore, London

10 January 2002

ISLE of Man Bank is launching a new capital guaranteed savings account that requires customers to lock in their capital for only two years. The FTSE range bond is aimed at expatriates and foreign nationals in the UK and worldwide and has a minimum deposit of £5,000.

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 January 25, 2002. 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.

David Saunders, chief manager, Isle of Man Bank, 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 offer is available to investors for a limited period, on a first come first served basis, with a closing date of January 22, 2002. The offer will close earlier if fully subscribed.

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