HSBC launched another Equity Linked Deposit Account (ELDA) recently for depositors looking for security of capital. Interest is paid out subject to increase in value of all the equities to which the account is linked.

The account is offered in either EUR or GBP denominations, and a minimum deposit of €2,500 and £2,500 respectively applies. Both options are linked to a pharmaceutical multinational stock basket made up of shares in Astrazeneca, Johnson & Johnson, Medtronic, Novartis, Pfizer and Wyeth. The term to maturity of ELDA will depend on the performance of the mentioned shares and may vary from a term of one to five years.

On the first anniversary date from strike date (16 February 2009), if all shares linked to the deposit increase in value, interest on the deposit is calculated at the rate of nine per cent and paid out to the account holder together with the original amount deposited. If, however, the linked shares do not all register an increase in value, no interest is paid and the capital deposited is renewed for a further year.

This principle is applied on subsequent anniversaries up to the fifth year and interest will be worked at 18 per cent for the second year, or 27 per cent after the third year, or 36 per cent after the fourth year or 45 per cent after the fifth and final year. The annualised rate of interest rate is equivalent to nine per cent p.a. If by the end of the fifth and final year, the share prices do not all register an increase in value when compared with the share price on strike date, then the account is closed and the original amount deposited is paid without any interest to the depositor.

The closing date for this limited issue is 9 February, but HSBC may withdraw the offer at any time prior to the closing date in case of over-subscription.

More information about ELDA can be obtained from the Customer Service on 2380 2380, HSBC’s website at www.hsbc.com.mt or any HSBC branch in Malta and Gozo.