Its FTSE Annual Income Kick-Out Plan September 2012 offers investors income of 7.25% per year.
The six-year-and-two-week plan has the potential to mature at the end of years three, four or five, paying a fixed 7.25% (gross) per year. It depends on the FTSE 100 index being above its opening level on any of the relevant annual measurement dates, the first of which is 30 September 2013.
The opening level will be set as at 28 September 2012.
No income will be paid if, on the relevant annual measurement date, the FTSE 100 is below 65% of its opening level. Investors will lose money if the index falls below 50% of this level on any business day during the term.
Meanwhile, its FTSE Income Deposit Plan September 2012, another six-year-and-two-week plan, offers the potential of a 6% (gross) income payment if the FTSE 100 stays between 4,750 and 7,000 for each business day during the relevant annual observation period.
Capital will be repaid in full on its maturity date, 12 October 2018; the plan’s start date is 28 September this year.
The counterparty for each product is Barclays Bank and RBS respectively.