Cater Allen Private Bank, part of Santander UK, has launched three new structured deposit plans: two growth plans and an annual locked-in return plan. All three plans are linked to growth in the FTSE 100 Index.

The Three and Three Quarter Year Growth Plan 16 has a maximum overall return of 26 per cent of the initial investment. The Six Year Growth Plan 16 offers an uncapped return and, unlike the shorter-term plan which is a zero per cent commission option, it pays three per cent advisor commission, with the option to partially or fully rebate this to the client.

The Annual Locked-In Return Plan 7 offers investors a return of their original investment at maturity, plus up to six annual locked-in returns, equivalent to 6 per cent gross of the original investment for each year that the FTSE 100 Index is at or above its initial level. The lock-in feature means that any cumulative returns will be paid out at maturity, avoiding any potential gains being wiped out by a drop at the end of the plan term.

“Structured deposits … offer 100 per cent capital protection, providing investors with the safety inherent in cash and the same protection as any other cash deposit account under the Financial Services Compensation Scheme, plus potential rewards linked to market growth,” Jonathan Banks, structured products manager at Cater Allen Bank, said in a statement.

Each plan requires a minimum deposit of £5,640 ($9,077) and is suitable for 2012/13 cash ISAs and ISA transfers. "Early bird" interest is included in each plan at a fixed rate of 0.50 per cent AER.