Cater Allen launch new income structured product

Cater Allen Private Bank, part of the Santander Group, launched its first new structured product of 2010. The bank is starting the decade with the introduction of a five year FTSE 100 linked plan that offers the potential for an income paid in each of the five years of the term, offering a return equivalent to 6.5 per cent of the initial investment per annum gross).

The ‘Capital Guaranteed Income Plan' will guarantee return of the initial investment at maturity. Any further return is determined by comparing the initial index level of the FTSE 100 and the index at annual observation dates throughout the five year term. The initial index will be taken on the 12 April, 2010.

Where the index is higher than the Initial Index level at the annual observation date, income is paid that year.

Fernando Gasca, Senior Investment Strategist at Cater Allen Private Bank, commented: "A new year and a new opportunity for those investors happy to make their money work for them over the long term. The potential rate of return from the Plan is currently three per cent higher than the expected dividend yield of the FTSE 100.  With the FTSE at a comparatively low level against two years ago, investors have the chance to exploit this to their advantage."

The deadline for investment in the new structured product is 26 March, 2010 (or earlier if sold out), and has a minimum investment level of £7200 and a maximum of £1 million.