Cater Allen Private Bank, the UK-based subsidiary of Santander Group, has launched a deposit-based product offering investors 100 per cent participation in FTSE 100 growth along with 100 per cent capital protection.

The Cater Allen Growth Plan 12 provides a market-linked, uncapped return equivalent to "100 per cent of any rise in the FTSE 100 Index at the maturity of the six-year plan", with monthly averaging throughout the final year to ease against volatility, the firm said in a statement. 

The Growth Plan 12 requires a minimum deposit of £5,340 ($8,447) and is suitable for 2011/2012 cash ISAs and ISA transfers. The firm said that investors’ deposits will be returned in full at maturity, even in the event that the index has fallen.

“Structured products can sometimes be confusing to explain to clients but this product offers a simple, straightforward payoff ratio. The 100 per cent capital protection feature is also a key attraction in the current climate,” said Scott Middleton of JM Taylor IFA.

The deadline for investment in the Growth Plan 12 is 30 March; it is set to open on 27 April.