United Bulgarian Bank, part of the NBG Group, announced on October 4 the launch of a new product that it calls “Wall Street” which, according to the bank, combines the features of a 100 per cent principal protected deposit account and the profitability provided by the international markets.

The index-based Wall Street deposit programme ensures income from international equities, commodities, real estate and bonds within no downside because the holder is entitled to a guaranteed deposit principal.

UBB is the first bank in Bulgaria to be launching structured deposits. The product combines the classic characteristics of deposits with investment opportunities, according to the bank.

UBB said that the product would enable Bulgarians invest on foreign stock exchanges at a minimum risk. Clients would need no special knowledge or skills and would not have to pay fees and commissions.

Competition among banks was gradually shifting from interest rates to new products, said the bank’s chief executive, Stilian Vatev.

Similar structured deposits are offered by Bulbank, but they are linked to investments in Pioneer Investments’ mutual funds, Dnevnik daily reported.