HSBC's ELDA Plus goes for growth

HSBC'S LATEST equity linked deposit account (ELDA) has been given a new twist to offer investors willing to take slightly more risk the opportunity to reap potentially bigger rewards. The new HSBC ELDA Plus still offers complete capital protection of the initial sum invested.

There are two options available. Both are five-year term deposits with the first option investing in a composite index comprising Japan's Nikkei 225 and Hong Kong's Hang Seng Index and the second investing in the UK's FTSE 100 Index.

At the end of the five years, however, investors who take the first option will receive a return equivalent to 80 per cent of any growth in the composite index; those who take the second will receive the equivalent of 75 per cent of any growth in the FTSE 100.

All returns will be paid in euros. This product is focused on capital growth and, for this particular ELDA tranche, no payments will be made to investors at any interval during the term of the investment.

"ELDA Plus is slightly different from previous issues of this product as investors will forego annual income in return for the possibility of greater returns at the end of the five-year period, HSBC's head of Personal Financial Services, Godfrey Swain, said.

"As with all ELDA products though, investors still retain the peace of mind of knowing that their initial investment is completely secured.

"The new HSBC ELDA Plus forms part of the bank's ongoing strategy of offering different products to suit the requirements of different clients who all have different priorities when it comes to their individual finances."

The HSBC ELDA Plus will be available till May 19. More details can be obtained from any HSBC branch, by calling 2380-2380 or from the Website www.hsbc.com.mt