Investment bank Credit Suisse First Boston (CSFB) is aiming its capital protected Tessa-only Isa (Toisa) at investors with maturing Tessas and those who are unhappy with the variable rate accounts of their original Tessa providers.
The global titans Tessa plan is linked to the 50 stocks listed on the Dow Jones Global Titans index. These include large global companies such as BP, Coca Cola and the Ford motor company.
Investors can choose a growth option that offers the return of the original capital plus up to 55 per cent of growth. Alternatively, an annual withdrawal option allows investors to withdraw 10 per cent of their capital each year as an income stream. They get the remaining 50 per cent of their capital returned plus up to 50 per cent growth.
The 50 stocks on the index are grouped into five baskets which each contain 10 stocks. Each basket represents 11 per cent of the final return for the growth option and 10 per cent of the final return for the annual withdrawal option.
Where a stock in any basket falls by more than 33 per cent of its initial value during the final year of the term, the value of the other stocks in that basket are wiped out when calculating the final level of growth.
Stockmarkets are currently at a low point and according to JPMorgan Fleming's latest survey, investors' confidence is also low. CSFB's full capital guarantee may help to ease cautious investors into doing something with their mature Tessas but some may be unwilling to risk ending up with only their original capital after tying their money up for a further five years.