Top 5 reasons to invest in our most popular income plan

Top 5 reasons to invest in our most popular income plan

03 September 2012 / by Oliver Roylance-Smith

The potential for 7.32% income each year...

“To explain why the Bonus Income Plan from Investec has proved so popular, we give you our Top 5 reasons to consider investing:

1.  High income - 6.84% fixed each year

2.  Fixed income – not reliant on the stockmarket

3.  Monthly payments – the most popular frequency

4.  Potential bonus - equivalent to 0.48% each year

5.  Subject to CGT* – no 20% deducted at source

The trade-off for the compelling upside is that your capital is at risk. Conditional capital protection means that if the value of the FTSE 100 falls below 50% of its starting value during the 5 year term and also finishes below its starting value, your initial capital will be reduced by the same amount as the index.

So for those who are fed up with low long term interest rates and poor investment yields, this investment could offer an attractive balance of risk v reward.”

Oliver Roylance-Smith, head of investments and savings

* The fixed income part is subject to capital gains tax whilst any bonus is treated as income and will have 20% deducted at source. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

This is a structured investment plan that is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.

There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The past performance of the FTSE 100 Index is not a guide to its future performance.

If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.