In this Money@Work, we take a look at a product being promoted at the moment; Zeeland Notes Series 1 from RaboBank and Intercap.

We ask some questions about the offer in this week’s column.

What is it called and what sort of savings product is it?

Zeeland Notes Series 1 is a deposit notes security.

Who is the company behind it?

Rabobank linked up with Intercap to offer the product.

Who is the target market?

With the option of a direct debt and a minimum investment of $5,000, the security’s looking at retail investors.

What does the return offer?

On maturity, investors can expect a return of between 0% and 80% depending on the initial level of the S&P/ASX 200 index and the average of six-monthly observations in the last two and a half years of the note’s life.

When was it launched?

The offer closes on July 14.

What other products is it like or is it competing with?

Liontamer’s Australia Series notes are also looking take leverage future gains on the Australian stock-market.

Is it long term, short term or medium term?

A medium-term way to lock up your money for five-years (although it does offer a monthly redemption facility).

What is the unique selling point?

The capital amount will be repaid regardless of whether the index falls, and the notes are hedged to the kiwi, so should avoid the currency’s volatility. Did we mention the direct debit option?

How strong a stomach do you need for it?

If you’re confident Australian equities have troughed and the only way is up then you should be fine, otherwise there could be some gut-wrenching moments.

What’s the hitch?

While offering funds for Rabobank, they’re a tad pricey with extra fees for Intercap and the brokers selling the product.