James Hay launches Selected UK Banking Plan

James Hay has launched the "Selected UK Banking Plan", an opportunity to participate in the performance of four of the UK's leading banking stocks with 100% capital protection at maturity.

In recent months there have been significant falls in the share values of many UK banks. This has resulted in banks restructuring to deal with a new economic environment.

Whilst it is not possible to know whether shares will return to their previous levels, current valuations of banking shares could be considered low and this in turn may offer attractive prospects for long-term investment in the sector.

The plan offers 100 per cent capital protection at maturity and full participation in any increase in the basket. The plan also provides the possibility for early maturity at the end of the first 4 years of the maximum 5 year term, with outstanding growth potential equivalent to 13% p.a. - the growth is not compounded. The early maturity conditions and returns for each year are:-

a. Year 1: If all four shares are greater than the initial level, investors receive a 13 per cent return and the plan redeems

b. Year 2: If all four shares are greater than the initial level, investors receive a 26 per cent return and the plan redeems

c. Year 3: If all four shares are greater than the initial level, investors receive a 39 per cent return and the plan redeems

d. Year 4: If all four shares are greater than the initial level, investors receive a 52 per cent return and the plan redeems

The plan has a minimum investment level of £10,000 and is issued by Abbey National Treasury Services plc, a wholly owned subsidiary of Abbey National, which is rated AA by Standard & Poors.

The product is available directly and within the James Hay SIPP and Wrap products. If the monies are held within a SIPP, under current legislation no tax will be due on the monies at maturity or earlier withdrawal.

Andy Pennie, Marketing Director of James Hay, commented: "In the banking sector, shares are experiencing volatility and a general downward trend in share prices as a result of the credit crunch. This product therefore offers an attractive and innovative option for investors seeking exposure to these important UK banking stocks, while significantly reducing capital risk.

"The potential tax free returns for SIPP investors make this a very attractive way to invest in this plan and hence why James Hay, a SIPP and Wrap specialist, has developed this exciting new investment opportunity."