The product, which Gilliat believes is the first of its kind to be issued by an independent provider, is a structured deposit which splits money equally between two fixed term deposits.
Fifty per cent of capital is allocated to a one year deposit paying 5 per cent gross fixed interest (on half capital) and the remaining 50 per cent in a five year deposit paying variable interest based on half the rise in the underlying index (on half capital).
Deposits will be held with The Royal Bank of Scotland plc (RBS) and investors can choose to link to either the RBS UK balanced sector index (UK equities), the RBS environmental strategy index (worldwide equities – solar energy, wind energy, blue energy and waste management) or the RBS commodity strategy index.
Managing director Adrian Neave says: “Financial advisers are telling us there is demand from investors wishing to earn higher returns than fixed deposits, but with the certainty that they will receive the return of their original investment. This is exactly what our structured deposit aims to achieve, subject to counterparty risk, and it also further enables advisers to diversify their clients’ exposure to risk.”