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DUAL PERFORMER
Stay Firmly in the Black
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If you have safety in mind and you would like your capital and part of your return to be secured, then the Laiki Bank Dual Performer 05 deposit product could be an alternative choice of a deposit for you.
The Laiki Bank Dual Performer 05 is a deposit product consisting of two equal amount sub products: the 18 Month Deposit and the FTSE100 Linked Deposit. Participation in Dual Performer 05 means participation to both sub-products with the same start date. Two separate accounts will be opened.
The 18 Month Deposit account (fixed for 18 months) will be allocated 50% of the Initial Deposit. The interest for the entire period is 10.5% Gross* (6.88% AER**) and will be paid on maturity date.
The FTSE 100 Linked Deposit is a capital guaranteed, three year fixed deposit. Its value is equal to 50% of the Initial Deposit. The interest is calculated based on the average*** quarterly performance of the FTSE 100 Index. If the FTSE 100 Index grows during the 3-year period, you will receive a return based on the 50% of your Initial Deposit (see “how your return is calculated”). If the FTSE 100 Index remains the same or goes down, you will receive only the 50% of your Initial Deposit. In this way, you will never lose your capital deposited.
Your capital and interest on the 18 month deposit will be given to you on the 19th of June 2007. Your capital on the FTSE 100 Linked Deposit will be returned to you on the 19th December 2008 and the interest 7 business days after that.
The Initial Deposit made in Dual Performer 05 accounts will be recorded on a deposit confirmation, which will be issued on the product start date. You will receive a notification form for the sub product FTSE 100 linked deposit 7 business days following maturity date. The quarterly FTSE 100 Index readings will be recorded on our website.
It is important to understand that this is a deposit product and it is not designed to provide the same return as investing directly in shares. Therefore, you are not entitled to any dividends arising from shares. Had you held shares directly, you would have also benefited by dividends paid by them.
The following table outlines the Dual Performer 05 features. More detailed information is contained in the product's Terms & Conditions.
| | 18 Month Deposit | FTSE100 Linked Deposit |
| % of Initial Deposit | 50% | 50% |
| Term | 18 months | 3 years |
| Offering Period | 28th November 2005 –19th December 2005 (inclusive) |
| Interest during Offering Period | Depending on the account funds are deposited in. |
| Start Date | 19th December 2005 |
| Maturity Date | 19 -6-2007 | 19-12-2008 |
| Deposit Period | 19-12-2005 to
19 -6-2007 | 19-12-2005 to
19 -12-2008 |
| Interest calculation | See “How your return is calculated” |
| Return | 10.5% Gross* (6.88% AER**) | Depends on performance of FTSE 100 |
| Minimum deposit | 20 000 GBP |
| Maximum deposit | 1,000, 000 GBP |
| Withdrawals | None permitted |
| Capital Paid | Transferred to Maturity Account on Maturity Date, 19th June 2007 | Transferred to Maturity Account on Maturity Date, 19th December 2008 |
| Interest Paid | To customer¢s Maturity Account on Maturity Date, 19th June 2007 | To customer¢s Maturity Account 7 Business Days after the Maturity Date. |
| Who can deposit? | You must be 18 or over |
| Fees | There are no fees on this product. |
How your return is calculated
The 18 Month Deposit
Interest rate is fixed at 10.50% Gross* (6.88% AER**) and is payable in full for the entire 18 month period on the maturity date (19/06/07) on 50% of the Initial Deposit.
Interest will not be compounded. On the maturity date the interest and 50% of the Initial Deposit will be transferred to your preselected maturity account.
The 3 year FTSE 100 Linked Deposit
In order to calculate the interest rate, based on the FTSE 100 performance, we will initially take the closing level of the FTSE 100 Index when the product begins on the 19th of December 2005 (this is called the Initial Index Level).
We will then take 12 readings of the closing FTSE 100 Index Level on the 19th of each quarter for 3 years from the 19th March 2006 to 19th December 2008, which will be the final reading (19th March 06, 19th June 06, 19th September 06 etc,). We will then average*** (arithmetic average) the 12 readings to calculate the Final Index Level.
The percentage difference of the Final Index Level from the Initial Index Level is the interest rate you will receive. We will then multiply this percentage with the amount deposited in the 3 year FTSE 100 Linked Deposit.
In case the percentage difference of the Final Index Level from the Initial Index Level is zero or negative, no interest shall be payable, but capital is guaranteed. Customers should note that the value of the amount originally deposited could be eroded by the effects of inflation.
Interest will be paid seven business days after the maturity date, and will be transferred to the maturity account. On the maturity date, customers will receive the amount deposited in the FTSE 100 Linked Deposit in their maturity account.
Here is How Dual Performer 05 could work for you
| | 18 Month Deposit | FTSE 100 Linked 3 Year Deposit | Payoff over 3 year period |
Scenarios | 50% of Initial Deposit | Interest | Your Initial Deposit plus Gross Interest at the end of 18 months (A) | 50% of Initial Deposit | % Difference between Initial Index Level and Final Index Level | Gross Interest Received for the 3 Years | Your Initial Deposit plus Gross Interest at the end of 3 Years (B) | A+B |
Scenario 1 | GBP 50,000 | 10.5% Gross (6.88AER) | GBP 55,250 | GBP 50,000 | -25% | 0% | GBP 50,000 | GBP105,250 |
Scenario 2 | GBP 50,000 | 10.5% Gross (6.88AER) | GBP 55,250 | GBP 50,000 | -50% | 0% | GBP 50,000 | GBP105,250 |
Scenario 3 | GBP 50,000 | 10.5% Gross (6.88AER) | GBP 55,250 | GBP 50,000 | +25% | 25% | GBP 62,500 | GBP117,750 |
Scenario 4 | GBP 50,000 | 10.5% Gross (6.88AER) | GBP 55,250 | GBP 50,000 | +50% | 50% | GBP 75,000 | GBP130,250 |
The above example is based on the assumption of a £100,000 Initial Deposit. The return does not include interest during the offering period. The above table is intended as a guide for reference purposes. It is not a representation of the exact returns you may receive and do not take into account deductions of income tax or the effect of inflation.
How to apply
You may want to decide on an amount to be deposited before you contact Laiki Bank. When making this decision you should choose an amount that leaves you with spare money for emergencies.
To apply or in case you require more information on this product or if you have questions on its features, you can phone Laiki Bank Private Banking on 020 7307 8421.
Laiki Bank does not offer any advice or personal recommendations as to the suitability of the Dual Performer 05 in meeting individual needs. Laiki Bank will provide information on the features of the product and the benefits to the depositor as a whole. You will need to decide for yourself or seek professional advice to evaluate the product suitability for your needs.
*Gross rate is the rate of interest before the deduction of income tax at the rate specified by law.
**AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year.
***Averaging will give you a different Final Index Level figure compared to an index reading taken on a single day. Averaging in a rising market may constrain the Final Index Level used to calculate your return.
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