Fsharp, the Isle of Man based internet branch of the Bank of Ireland has introduced the top20 account.
Top20 is an internet based deposit account with a difference, as it comes in two halves. The first part is an ordinary deposit account that pays an interest rate of 20 per cent over the two year term.
The second part is a capital protected deposit account that is linked to the FTSE 100, Nikkei 225, Standard & Poor's 500 and Dow Jones Eurostoxx 50 indices in equal amounts. It will pay up to 50 per cent of the growth that the indices produce over three years. In the event that the indices do not grow at all, the investor will still get all of their original capital back.
Providing a low risk approach to investing in the indices will prove popular with many cautious investors. When coupled with the high interest rate this makes a very attractive product.
Over a three year period the FTSE 100 index rose from 4870.197 points on September 1 1997 to 6672.66 points on August 31, 2000.