Bank of Valletta has launched a new deposit account denominated in euros.

Among the account's features is a capital guarantee on maturity or early termination. The deposit may be called and the capital paid back in full before maturity at the bank's discretion. Interest is paid on a six-monthly basis.

The gross interest payment for the first year is guaranteed at 6.15 per cent, payable semi-annually. Thereafter the interest will be variable, linked to the six-month Euribor. The interest rate is floored at 0.00 per cent and can never be negative.

Therefore, the bank said, the account offers attractive interest payments in a scenario where the six-month Euribor remains at current levels or increases gradually. Should, however, the six-month Euribor rise at accelerated rates, this would reduce interest payments after the first year.

This account can be opened with a minimum deposit of €10,000 and in multiples of €10,000 thereafter. This is a limited offer, subject to availability. Subscriptions will close on August 30 or earlier at the bank's discretion.

In accordance with current tax legislation Maltese resident investors may opt to be taxed at a 15 per cent final withholding tax on any interest received. Investors who are not subject to tax in Malta will receive interest gross without deduction of final withholding tax. Future changes in tax law or practice may affect net interest payable.

Fluctuations between the depositor's reference currency and the euro may have an impact on the interest payable and on capital repayment upon maturity or earlier redemption of the deposit when converting back to the base currency.

Further information may be obtained from any BOV branch or from the bank's Customer Contact Centre on 2131 2020.