deposit fund in which investors may earn between 12 and 36 percent on their money at the end of three years.

Investors may put money into The Butterfield USD Stock Deposit fund until July 25, after which the fund will be closed off. The minimum investment is US$10,000. The fund tracks the Standard & Poor's (S&P) 500 Index, a broad base of 500 US stocks widely considered the benchmark for large-stock investors.

The fund will track the S&P Index quarterly starting at the level measured on July 28. For every quarter of the year, if the index is higher than the previous quarter the bank will pay investors three percent. If the index is lower than the previous quarter investors will not receive a payout.

Thus if the index rises every quarter during the three years investors will earn the maximum yield of 36 percent, or 12 percent a year, over the 12 quarters. If the stock market begins a crash and the S&P Index falls every quarter the bank will guarantee investors a payout of 12 percent, or four percent a year, at the end of the three years.

The returns and the original deposit will only be paid at the end of the fixed term of three years. The fund, which is not open to US citizens or residents, will not charge any fees on the deposit during the three years.

Richard Gonzales, the bank's vice president of treasury and capital markets, said the fund was aimed at every investor who wanted to take advantage of the growth in the US stock market without taking a risk on losing their original investment.

The bank plans on hedging the money by investing it in the options market and will make its money on the spreads, he said.

He said the bank hoped to attract at least $5 million to the fund.