HSBC has launched another Equity Linked Deposit Account (ELDA), popular with depositors looking for security of capital. The underlying index is the Dow Jones STOXX 50.
The term of this ELDA account is five years and is available in euro or pound Sterling denominations. A minimum deposit of €2,500 and £2,500 respectively applies. The account offers 100 per cent capital security.
The return is earned if after five years the index increases when compared with the index level on Strike Date, which is 21 April 2009. If after the five-year term, the index registers any growth up to 40 per cent, the investor receives 20 per cent, or 3.71 per cent per annum, return on the original deposit. If there is more than 40 per cent growth, the return on the original deposit will be a maximum of 35 per cent, or up to a maximum of 6.19 per cent per annum.
No return is paid if the index does not increase in value after the five-year term. However, HSBC will pay back the full deposit. If the base currency is different from the currency of ELDA, the value of the deposit is subject to currency exchange rate fluctuations.
The closing date for this limited issue is on 14 April 2009, but HSBC may withdraw the offer at any time prior to the closing date in case of over-subscription.
More information about ELDA may be obtained from the Customer Service on 2380 2380, HSBC’s website at www.hsbc.com.mt or any HSBC branch around Malta and Gozo.