Birmingham Midshires is aiming to capitalise on fears investors may have about future stockmarket drops by introducing the Guaranteed Investment Account.
It is designed for investors who are looking for stock market growth but who are wary about stockmarket falls similar to those seen recently.
The product is a two-year guaranteed equity bond that tracks the FTSE 100 index, with the guarantee that even if the index falls beneath its starting level over the period, investors will get all of their original investment back.
The initial starting level of the index will be the average over the two-weeks from July 14 to July 28, 2000, while the closing level will be the average over a three-month period starting on March 28, 2002.
If the FTSE 100 index rises, then the return that the investor will get back will be 118 per cent of the original investment.
The product could be attractive to low-risk investors who are wary about investing in the stockmarket but who want guaranteed return of capital and better returns then those provided by a building society account. The product is otherwise unremarkable.