In simple terms, a structured deposit product can be thought of as a combination of a traditional savings account and a stock market investment.
This is because the returns generated from a structured deposit are linked to the performance of a particular index or indices, such as the FTSE 100.
However, unlike pure investment products, structured deposits guarantee that, regardless of how the stock market performs, your initial investment will be returned in full at maturity.
Structured deposits are also sometimes referred to as Guaranteed Equity Bonds, or GEBS for short.
If you’re looking for a structured deposit, make sure you don’t take out a structured investment by mistake. Structured investments do not offer the same protection or guarantees over the return of capital as structured deposits.
However, remember structured deposits are complex products, so it is always a good idea to seek independent financial advice before investing in this type of product to ensure you select the best product for your individual needs.
Disclaimer: This is a basic guide to structured deposit products. It does not cover every circumstance and nor is it intended to be a source of advice.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.