HSBC issues new capital-secured equity-linked deposit
HSBC Malta has launched a new Equity Linked Deposit Account (ELDA) for depositors looking for security of capital, and the potential to earn a higher return than that normally offered by other deposit accounts. The closing date for this limited issue...
HSBC Malta has launched a new Equity Linked Deposit Account (ELDA) for depositors looking for security of capital, and the potential to earn a higher return than that normally offered by other deposit accounts. The closing date for this limited issue is 22nd July, but the bank may close this offer earlier in case of oversubscription.
The five-year deposit account is denominated in euro, and requires a minimum deposit of €2,500. Return on this deposit is linked to the performance of an underlying basket of stocks composed of five leading German companies, which are Allianz SE, Siemens AG, E.ON AG, Bayer AG and Deutsche Telekom AG.
Every year, a valuation of the stock is performed in the last week of July. If the price of all the shares listed in the stock basket register an increase or are equivalent to the share price as quoted on the strike date of 26 July 2010, the account holder will receive a return of 8% per annum on the balance held in the ELDA, the bank said.
Payment of the return will be made in the first week of August. If the share price of any of the companies forming part of the stock basket is less than the value as quoted on strike date, no return will be paid. The account is rolled over each year until the 5th year maturity. Funds held in the ELDA are paid back to customers in full on 6 August 2015.
More information about ELDA may be obtained from the Customer Service on 2380 2380, HSBC's website at www.hsbc.com.mt or HSBC branches around Malta and Gozo.