Standard Life adds new panel for structured deposit accounts

Standard Life has this week added a panel of structured deposit accounts to its International Bond. Structured deposits combine capital protection with the potential for capital growth dependent on the performance of the underlying investment, e.g. the FTSE being a certain level at the end of the fixed term.

Structured deposits are fixed term investments issued by banks that guarantee to return at least 100% of the capital invested at the end of the term (before the deduction of International Bond product charges). They also offer the potential for higher returns than traditional deposit accounts. This is because the returns are usually linked to the performance of higher risk investments, such as equity indices. The returns are not guaranteed, however, and customers may only get back their initial investment. Investing via an International Bond has the added advantage that any growth is virtually tax-free.

There are four accounts available from Barclays Capital, Cater Allen, RBS and Zurich, each offering a range of terms and conditions.

Key benefits of structured deposits and an International Bond are:

Tax-free growth - Investments in an International Bond grow virtually free of tax.

Capital protection - clients will get back at least 100% of their initial investment at the end of the structured deposit term (before the deduction of International Bond product charges).

Potentially higher returns than a traditional deposit account, depending on investment performance.

Mark Polson, Head of Customer Management at Standard Life commented: "Our customers want a secure home for their money with the potential for better returns than a traditional deposit account is currently offering. With the Bank of England base rate at an historic low and the uncertain economic climate, the combination of capital security and potential returns offered by a structured deposit account make them an attractive investment option at this time."