In year one the range starts at plus or minus 21% of the opening level and each year it expands 6% to reach plus or minus 45% from the opening level in year five.
As long as the FTSE 100 stays within the range specified for each year, the 7% interest payment will be paid.
Adrian Neave, managing director of Gilliat Financial Solutions, said: "We continue to experience a high level of requests for products that offer the opportunity for regular coupons at higher levels than are available from high street deposit accounts, a fact which is evidenced by the success of our Income Builder product.
"To complement this, and to offer an option for those who are prepared to risk returns but not their capital, we have issued Gilliat Range Deposit – April 2012.
"This product will appeal to those who envisage continued range bound trading as the world economy attempts to fix itself."
Lloyds Banking Group is the delivery mechanism for the product, which Gilliat said should mean investors have access to the FSCS where applicable.
The product closes to new investments on 23 April.
