Royal Bank of Scotland International has established a guaranteed equity bond that is available in sterling, dollar or euro currency denominations.
The bonus builder account is linked to the FTSE 100, S&P 500 and Dow Jones Eurostoxx 50 indices during a three-year term. The returns investors get will depend on the performance of these indices and the currency investors choose.
Investors who choose sterling are guaranteed their original capital back, plus a minimum return of 9 per cent on top of this. The three indices are monitored every six months during the term and where all three rise or stay at the same level, a 3 per cent return is locked in. If this happens at every six-month interval, a 7 per cent bonus is added, bringing the maximum return up to 25 per cent.
Euro and dollar investors are guaranteed their original capital plus a minimum return of 6 per cent at the end of the term. The three indices are monitored on the same basis as sterling investments, but a 2 per cent return is locked in. If this happens at every six month interval, an 8 per cent bonus is added, bringing the maximum return up to 20 per cent.
This product has a shorter term and greater currency choice than offshore products such as Irish life International's secure growth bond 9, which offers a choice between sterling and euros.
However, the Irish Life International product also offers a choice of capital protection, but the Royal Bank of Scotland product does not provide this type of choice.