Pension Investment – Defined Returns

Structured Investments can offer the potential to be defined returns pension options, as they offer term investment or deposit options with the potential for a defined return, with varying levels of risk to your capital.


There are two broad types of Structured Investments which can potentially be defined return pension options.

  • Structured Deposits - are cash based term deposits that offer capital protection similar to a fixed term bond. This type of deposit will pay a potential defined level of interest often linked to the performance of an index like the FTSE 100 over a specific period of time.
  • Structured Investment Plans - are investment based and capital will normally be at risk. This type of investment plan will pay a potential defined level of return often linked to the performance of an index like the FTSE 100 over a specific period of time.
Growth Structured Deposits
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
5 Year Defensive Deposit PlanInvestec Bank plcyes5 years

18%

at end of term

More Info >
  • 18% fixed return if the Index is higher than 95% of its Initial Level
  • Capital protected
  • Low minimum - £3,000
  • Medium/longer term alternative to fixed rates
  • Available for Cash ISA,  ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
4 Year Deposit PlanInvestec Bank plcyes4 years

15%

at end of term

More Info >
  • 15% fixed return if the Index is higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA, ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
Kick Out Deposit PlanInvestec Bank plcyesUp to
6 years

4%

per annum

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  • 4% for each year if the FTSE 100 finishes higher than its starting value
  • Opportunity to mature early at year 3, 4 or 5
  • Alternative 8 year option offering 4.5% kick out from year 4 onwards
  • Capital protected
  • Short/medium term alternative to fixed rates
  • Available for Cash ISAs, ISA transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital 
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

Whilst structured deposit plans are capital protected, you may not get back the full amount of your initial investment if the plan is not held for the full term. There is also 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.

Structured Investments are designed to deliver a potential defined level of either income or growth but carry higher levels of risk to your capital.

Investing for Growth - Structured Investment Plans
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info
FTSE 100 Enhanced Kick Out PlanInvestec Bank plcyesUp to
6 years

9.35%

per annum

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  • 9.35% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment 
  • Investment deadline for ISA transfers - 24 November 2017
  • Investment deadline for direct and ISA applications - 15 December 2017
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE Kick Out PlanCredit Suisse AGyesUp to
6 years

8.70%

per annum

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  • Potential early maturity return of 8.7% x the number of years the plan has been active
  • Maximum 6 year structured investment plan
  • Potential for early maturity from year 1
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfer applications - 11 December 2017
  • Investment deadline for direct & ISA applications by cheque - 19 December 2017
  • Investment deadline for direct & ISA applications by bank transfer - 27 December 2017
  • Capital at risk
  • Repayment of your capital and payment of any return depends on the performance of the FTSE 100 Index and the ability of the counterparty Credit Suisse AG to pay at maturity
  • Arrangement fee applies
  • If you decide to sell the plan early, you may get back less than your original investment
  • May close early if oversubscribed
10:10 PlanNatixisyes10 years

8.25%

per annum

More Info >
  • 8.25% for each year (not compounded) provided the FTSE 100 finishes at or above its starting value
  • Alternative option 1 available returning a potential 7% pa if FTSE finishes up to 82.5% of its starting value over term of plan
  • Alternative option 3 available returning a potential 11.50% pa if FTSE finishes at or above 110% of its starting value
  • Potential to mature early, from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline ISA transfers - 29 November 2017  
  • Investment deadline for direct and ISA by cheque - 13 December 2017
  • Investment deadline for direct and ISA by bank transfer - 20 December 2017 
  • Capital is at risk if the FTSE 100 Index has fallen by more than 30% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £10,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Some structured investment plans are not capital protected and there may be the risk of losing some or all of your initial investment. There is also 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 which case you will not be entitled to compensation from the Financial Services Compensation Scheme (FSCS).

In addition, you may not get back the full amount invested if the plan is not held for the full term. You should ensure you are fully aware of any risks prior to making a decision on investing.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.