Compare Income Investments

Oliver Roylance-Smith, Director "Our range of income investment opportunities includes high yield plans from leading investment banks as well as a selection of income funds available via our leading fund supermarket. The investment plans and funds offer a variety of yields and different income payment frequencies. If you have existing investments or are looking for a wider range of income opportunities, you may also want to visit our experienced investor section. Most plans and funds featured are available as a new ISA and for ISA transfers."
Oliver Roylance-Smith, Head of Savings and Investments
Investing for Fixed Income - FTSE linked
ProviderPlan NameCounterpartyISA OptionTermIncome YieldMore Info
FTSE 100 Enhanced Income PlanInvestec Bank plcyes6 years5.64%
fixed income per annum
More Info >
  • 5.64% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for NISA, NISA transfer and direct investment 
  • Investment deadline for NISA transfers - 12 September 2014
  • Investment deadline for direct and NISA - 26 September 2014
  • Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, 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
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.
Investing for Fixed Income - Linked to shares
ProviderPlan NameCounterpartyISA OptionTermIncome YieldMore Info
FTSE 5 Monthly Income PlanMorgan Stanley BVyes6 years7.62%
fixed income per annum
More Info >
  • 7.62% fixed income paid regardless of the performance of five FTSE 100 shares
  • Monthly income
  • Available for NISA, NISA transfer and direct investment 
  • Investment deadline for NISA transfers - 12 September 2014
  • Investment deadline for direct and NISA by cheque - 19 September 2014 
  • Investment deadline for direct and NISA by bank transfer - 24 September 2014
  • Capital is at risk if one or more shares has fallen by more than 50% at the end of the term, in which case your initial investment will reduce by 1% for each 1% fall of the lowest performing share
  • Minimum investment £5,000
  • 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.

Investing for Income - FTSE linked
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info
FTSE Quarterly Income PlanBNP Paribasyes
6 years
6.2%
per annum
More Info >
  • Up to 6.2% per year based on the performance of the FTSE 100
  • Quarterly payments
  • Available for ISA, New ISA from 1st July, ISA transfer and direct (non-ISA) investment
  • Investment deadline ISA transfers - 23 July 2014
  • Investment deadline for direct and ISA/NISA - 4 August 2014
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • 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.
Investing for Income - Linked to shares
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info
FTSE 4 Quarterly Income PlanCredit Suisse AGyes
6 years
9%
per annum
More Info >
  • Up to 9% per year based on four FTSE 100 shares staying above 60% of their opening values
  • Quarterly payments
  • Available for NISA, NISA transfer and direct (non-NISA) investment
  • Investment deadline NISA transfers - 29 August 2014
  • Investment deadline for direct and NISA by cheque - 5 September 2014
  • Investment deadline for direct and NISA by bank transfer - 10 September 2014
  • Capital is at risk if one or more shares has fallen by more than 50% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall of the lowest performing share
  • Minimum investment £5,000
  • 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.

Income Investments


As an income investor, firstly you need to decide what type of assets you want to invest in. Different assets have different risk profiles so your attitude to risk should determine what you are prepared to invest in. Generally speaking the more risk you are prepared to take when it comes to investing the higher the potential rewards. In investing in a range of different assets you can mitigate investment risk. An example of mitigating risk could be through collective income investments or investment funds - see our fund supermarket - which provides a way for investors to access a range of different asset classes cost effectively.


Secondly as an investor you are hoping for a return on your money. If you have cash in the building society or bank typically you will look at the interest payment as a percentage of the sum deposited known as the interest rate e.g. if you deposit a £1,000 in the bank and they pay you £30 gross p.a. then the interest payment is 3%. Likewise for a company share where typically you can expect an annual dividend (although this is not guaranteed) the return is determined by the annual dividend divided by the share price quoted on the stockmarket e.g. A company makes a combined annual dividend of £0.07p per share and the share price is £1.00, gives a return of 7%. Unlike cash earning interest in a bank deposit account with a company share there is also the potential for capital appreciation. So if the company share was bought for £1.00 and rises to £1.05, then the overall return is 12%. With company shares prices can go down as well as up so if the share price fell to £0.95p then the overall return would be 2%. The return you can expect will be determined by the assets you invest in.


Thirdly time is an important consideration when investing. Due to the impact of inflation over time a £1 today is worth more than a £1 a year from now (the only caveat to that is if there is a period of deflation). If you are prepared to lock money away for a long period of time you should be rewarded for this e.g. banks offering fixed rate bonds will pay greater rates of interest the longer you are prepared to commit money typically 1 to 5 years. For some types of security such as government gilts which have a finite shelf life the nearer you are to the redemption value the more likely this will be reflected in the price you pay for the asset.


Fourthly as an investor you need to consider how important access to capital is. Different assets have varying degrees of liquidity. If you invest in property then if you require capital at short notice this may be problematic. This might also be true of assets such as art and antiques where finding willing buyers may take time. For many types of asset including bonds, shares and commodities there are well established trading markets which makes it easier to realise capital quickly if required.


Our website provides a range of income investment options for investors to consider. If you are unsure of what investments are suitable for you you should seek financial advice.

Select Income Funds
Fund ManagerFundFund Manager Initial Charge¹AMC³Income Yield*Select Fund°Fact SheetApply Now
Kames High Yield Bond0%0.75%5.20%yesFactsheetMore Info >
Income Paid Monthly. The primary investment objective is to maximise total return(income plus capital) by investing in a portfolio of predominately high yield bonds, selected investment grade bonds and cash. The fund may hold sterling and other currency denominated bonds hedged back to sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plus0%0.63%5.25%yesFactsheetMore Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Newton Asian Income0%0.75%5.43%yesFactsheetMore Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Artemis Income0%0.75%3.80%yesFactsheetMore Info >
Income Paid Twice Yearly. This fund aims to provide an increasing income and capital growth from investing mainly in ordinary shares, preference shares, convertible bonds and fixed-interest securities in the UK. We will not be restricted in our choice of investments, either by the size of the company, the industry it trades in, or the geographical split of the portfolio. See latest fund factsheet for details.
Jupiter Merlin Income Portfolio0%0.75%3.10%yesFactsheetMore Info >
To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividend0%0.75%3.27%yesFactsheetMore Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
M&G Optimal Income0%0.75%2.31%yesFactsheetMore Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 17/10/13 - Yields are rounded down to one decimal place - See latest Fund Factsheet for details.

³AMC is the Annual Management Charge applied by the Fund Manager. 

°Select Fund - See how our funds are selected

 

Bonds: To provide the potential for overall returns these funds invest in bonds, also known as fixed interest securities. This is achieved by receiving regular interest on loans to companies or governments. There is a chance the bond issuer could fall into financial difficulty and will not be able to pay the interest or the loan back, which could result in a fall in your investment returns. Bonds can also be sensitive to trends in interest rate movements and if interest rates go up, the returns on your investment are likely to fall as bonds can become less attractive. On the other hand, if interest rates fall, bonds are likely to become more attractive and your investment returns increase.

 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.