Barclays Capital launches guaranteed deposit accounts

January 30th 2009

Due to demand for a short-term product, Barclays Capital has decided to expand the offering to sterling investors to include the Three Year digital payoff. Barclays Capital believe this type of investment is simple to explain to potential investors, as clients either get an above market-rate of interest if the index is higher in three years time, or else receive no interest if the markets are lower.

With UK base rates currently sitting at 1.5% and talk of further rate cuts, the opportunity and cost of investing in this style of product makes it compelling.

The Five Year Guaranteed FTSE 100 Deposit Account has been the core sterling denominated offering throughout 2008 and remains popular with investors seeking a longer-term and more traditional growth payoff for their client base.

While the accounts have only been available in sterling, Barclays Capital can create similar accounts denominated in other key currencies if demand is sufficient.