The Deposit Kick Out – August 2012 maintains the security of a deposit account with capital protection regardless of the performance of the underlyings.
Adrian Neave, managing director of Gilliat Financial Solutions, said that for every year the product is held the reference level is reduced by 5%, enabling falls of up to 25% while still allowing a kick-out at the end of the term.
He added: “The probability of receiving the coupon, which is high relative to high street cash rates of around 4.5%, is enhanced by the descending reference level for the kick-out event.
“This defensive feature means that our back-testing, which we always publish in the investment guide, suggests that this product would have provided investors with a coupon of 8.25% for each completed year almost 90% of the time.
The deadline for investment is 23 August; the product’s counterparty is Royal Bank of Scotland.