HSBC has announced that it has launched another of its popular Equity Linked Deposit Account (ELDA) 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 ELDA issue comes in two options denominated in EUR and GBP with a minimum deposit of e2,500 and £2,500 respectively. The EUR option is linked to a stock basket composition made up of JPMorgan Chase and 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 8 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 9 May 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 8 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 ELDA currency, the value of the deposit is subject to currency exchange rate fluctuations which may go down as well as up over the term of the ELDA.
“HSBC’s global knowledge and expertise is giving customers once again an exciting new version of the Equity Linked Deposit Account,” said HSBC’s Head of Personal Financial Services, Godfrey Swain. “ELDA past issues have been tremendously successful, and this fresh issue will not be any different.”
Closing date of this limited issue is 2 May 2008, 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 about ELDA one may contact Customer Service on 2380-2380, visit HSBC’s website at the address www.hsbc.com.mt or call at any HSBC branch around Malta and Gozo.