Our Guaranteed Capital Account is a Fixed Term deposit account that gives you the opportunity to receive a combination of regular income payments and interest payable when the account is closed (this interest is linked to the potential growth of the stockmarket). In addition, as long as you've made no withdrawals the account is designed to return your original deposit in full at the end of the fixed term.
How it works
At the beginning of the fixed term your deposit is split equally between the 'Income Fifty' and the 'Capital Growth Fifty'.
The Income Fifty half of the account earns income that is either payable monthly, or rolled up and paid at the end of the fixed term. The rates offered are different for each issue and generally track the Bank of England Base Rate for the fixed term. We may offer additional introductory rates, for example, a fixed rate may be offered for the first year of the fixed period and subsequent years will track the Bank of England Base Rate.
Bear in mind that the half of your deposit designed to pay interest depending on the performance of a stock market index isn't designed to provide the same return you could expect from a direct investment in shares, and that unlike direct investment in shares you would not receive any dividend payments. However, unlike a direct investment in shares the account is designed to pay back your original investment value in full, assuming you haven't made any withdrawals, even if the value of the stock market falls. You should bear in mind that if you only receive back your initial investment amount, inflation could have reduced its value in real terms over the period of the investment.
For further information about the benefits of the account, how it works and the risks involved, you can refer to our literature (available to view on the 'Apply' page if an issue is currently available). If you have any further questions please call us or make an appointment to see one of our Financial Planning Managers.
Each issue is available for a limited period only and terms for each issue may vary. Please see the rate insert for details of the terms of the current issue.
The Guaranteed Capital Account can be opened with a minimum deposit of £3,000. If you have cash ISAs from previous tax years, either with HSBC Bank plc or with another ISA manager, you can also transfer these into the Guaranteed Capital Account ISA and retain their ISA status. Such transfers will not affect your ISA allowance for the current tax year.
The account is designed so that you should receive the maximum benefits if you commit to the full term. While it's possible to withdraw money from your account, due to the way the product is designed you should only consider applying for this product if you are able to commit to the full fixed term. In addition, withdrawals before the end of the fixed term could result in you getting back significantly less than you put in.
The use of the word 'Guaranteed' refers to HSBC Bank plc's ordinary contractual obligation as a deposit taker to pay back your initial deposit in full and any interest due in accordance with the terms of the product. There's no third party guarantee on this account. In the unlikely event that HSBC Bank plc fails to meet its obligations, you must rely on any right to recourse through the Financial Services Compensation Scheme. In respect of deposits with a UK office, payments under the Scheme are limited to 100% of the first £50,000 of a depositor's total deposits. More information can be found out about this at the Financial Services Compensation Scheme website www.fscs.org.uk or by calling them on 020 7892 7300. For details of HSBC Bank plc's current credit rating please see the rate insert.
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