NatWest International Personal Banking (IPB) has launched an EcoGrowth account for those that wish to reflect their personal commitment to green issues in the way that they save.
The EcoGrowth account is a structured deposit account with two deposit options, allowing consumers to take advantage of the potential growth in the emerging 'Green' business sector. The launch follows in the footsteps of NatWest IPB's previous successful 'Green' accounts - Elements One and Two.
EcoGrowth option one includes two elements; a fixed rate cash element, and an element which is linked to the 'RBS Green Index'. The fixed rate cash element, which is one third of the total deposit, matures after just 1 year with a return of 7% gross AER. Upon maturity of the element linked to the 'RBS Green Index', customers will receive the remaining two thirds of the total deposit plus 70% of the calculated growth in the index on these two thirds. Option two places the total deposit into a four year 'green' business sector account. Upon maturity customers will receive their deposit plus the greater of a minimum return of 12% or 70% of the calculated growth in the index on the full deposit. Each option provides the certainty of a fixed interest rate and potential gains in the emerging and future oriented 'Green' business sectors.
The deposit will be split into two elements:
1 year cash deposit paying 7% gross AER
One third of the deposit is placed into a 1 year fixed rate account that will receive a guaranteed interest rate of 7% gross AER
This one third of the deposit plus interest will be re-paid after just one year.
4 year Green business sectors deposit
Two thirds of the deposit will be placed into a four year account with any returns based on the performance of the 'RBS Green Index'.
Upon maturity the deposit will be returned as well as 70% of the calculated growth in the 'RBS Green Index' on these two thirds.
The total deposit is placed into a four year 'green' business sector account:
4 year 'Green' business sectors account
The full depositit will be placed into a four year account with any returns based on the performance of the 'RBS Green Index'
Upon maturity, the full initial deposit is returned plus either 12% interest or 70% of the calculated growth in the index, whichever is the greater.
Dave Isley, Head of NatWest IPB comments: "The EcoGrowth account has been designed for those who recognise the potential growth in companies whose business it is to address environmental challenges. It is also for those who want to reflect their personal commitment to environmental issues in the way that they save. Our previous 'Green' offerings - the Elements One and Two accounts were hugely successful, and we have seen that customers are keen to explore further growth in the Green business sector, so we anticipate that this will be a successful account offering. By giving customers two different deposit options we are also enabling them to meet their own personal savings goal."
The offer period is open from 20th October to 19th December 2008 with a minimum deposit of £10,000. Option 1 - 1 year cash element will mature on 19th January 2009, and the 4 year 'green' element will mature on 23rd January 2013 and Option 2 will mature on 23rd January 2013.
The RBS Green Index is an index of some of the most prominent companies' active within Green business and covers a variety of sectors including biotechnology, biomass, hydroelectricity, solar and wind energy, energy management services and materials for energy-use reduction.