New equity-linked deposit account

HSBC yesterday launched another equity linked deposit account for depositors looking for security of capital coupled with interest being paid out with any growth in all the equities linked to the account.

This issue comes in two options denominated in euro and sterling with a minimum deposit of €2,500 and £2,500 respectively. The euro option is linked to a stock basket composition made up of JPMorgan Chase & Co, HSBC Holdings plc, Nomura Holdings Inc and UBS Ag shares while the GBP option is linked to a stock basket composition made up of HSBC Holdings plc, Barclays plc and Lloyds TSB Group plc shares.

Customers will receive eight per cent interest after the first year if all the stock prices in the basket increase by any amount when compared with the stock price on strike date of May 9, 2008. If not, customers will have the possibility of receiving 16 per cent interest after the second year or 24 per cent interest after the third year, always subject to all the stocks increasing when compared to the prices on strike date. This is the equivalent to eight per cent per annum. Once interest is earned, the account will close. If by the end of the third and final year the stock prices do not increase by any amount when compared with the stock price on strike date, the account will close and no interest is earned.

The value of the deposit, and any returns, will be paid back in full. However, if the base currency is different from the deposit account currency, the value of the deposit is subject to currency exchange rate fluctuations which may go down as well as up over the term.

The closing date of this limited issue is May 2, but in the case of over-subscription, HSBC reserves the right to withdraw the offer at any time prior to the closing date. For more information one may contact Customer Service on 2380 2380, visit HSBC's website at www.hsbc.com.mt or call at any HSBC branch around Malta and Gozo.