A NEW guaranteed tracker bond has been introduced by National Deposit Brokers (NDB). Known as the High Rate Bond, it guarantees to pay a maximum 44 per cent after-tax return (60 per cent gross) after five years if the indices to which it is linked achieve any level of growth or end the five years at the same index point from which it began.

The High Rate Bond tracks the performance of the Japanese Nikkei and the SMI, the Swiss stock exchange. The capital sum - a minimum £5,000 is required - is also guaranteed so long as the contract is kept for the full five-year period. No income can be taken from the bond.

National Deposit Brokers, which is based in Dublin, is best known for finding best deposit rates for their corporate and private clients and has designed this tracker as a "safe deposit type investment for those clients who wanted some exposure to equity markets but weren't prepared to risk their capital", says Douglas Farrell of NDB.

"We've been able to offer a better return than average because we have cut the margin that the larger institutions need to take on these products." The State bank, ICC Bank, is acting as the deposit taker in this case.

Investors do need to keep in mind that the 44 per cent profit will only be paid if this bond's growth has maintained or exceeded its starting level after the five years. If the indices fall below the 1996 index point, no profits will be returned, though the capital is guaranteed. The 60 per cent gross return "should appeal to non-residents, charities and pensions funds", says Mr Farrell.

Anyone thinking of investing in this guaranteed bond, or any others on the market should consult an independent adviser as to the merits of the product.