Societe Generale has launched a deposit plan offering UK investors a choice between income and growth. The Plan is linked to the performance of the FTSE 100 Index over the next six years.

Under the income version of the UK Range 7 Deposit Plan 3, investors can earn an annual coupon of up to 7 per cent a year; the growth option offers a return of up to 43.8 per cent gross (7.3 per cent a year) at maturity.

In order for the annual coupons to be awarded, the FTSE 100 Index must close within a specified range on each trading day of the year. The specified range gets wider each year, starting at +/- 12 per cent in year one and rising to +/- 25 per cent in year six. The annual coupon will not be paid for any year that the FTSE 100 closes outside this range.

The minimum investment is £3,000 (about £4,800). Both versions of the plan are available with or without commission. In the "advisor fee" plans, which do not pay commission, the specified range widens at a much faster rate, rising to +/- 32.5 per cent in year six.