OPTION 2 offers up to 7.50% annual income and early maturity... OPTION 1 offers 6.00% unless the FTSE falls 40% or more
This popular plan from Investec offers the potential for a 1.875% payment each quarter, depending on the performance of the FTSE 100 Index. That’s a potential 7.50% income per year.
The Index is measured at the start of the plan, and then again at the end of each quarter. If the Index is above 80% of its starting level (i.e. it can fall nearly 20%), a 1.875% income payment is made. If the Index has fallen by 20% or more, no income payment is made for that quarter.
The plan also offers some capital protection against the UK markets falling since your initial capital is returned in full, unless the Index has fallen by more than 40% at the end of the plan term. If this does occur, your capital is reduced in line with the Index and you could therefore lose some or all of your initial investment.
So if you’re looking for high income opportunities and are confident the UK markets will not fall by 20% or more, this plan is certainly worth reviewing.
This plan also has another option offering 6% income unless the Index falls by 40% or more.
Potential annual income: 7.50%
- Potential to kick out (mature early) yearly from year 2 onwards
- Alternative option available paying up to 6% each year if the Index doesn't fall by 40% or more
- Capital at risk product*
- Investment term: Up to 8 Years
- Arrangement fee applies
- Minimum single investment: £3,000
- Maximum ISA investment: £20,000
- No maximum ISA transfer
- No maximum total investment
- The Plan is available for 2017/18 Stocks & Shares ISA, 2018/19 Stocks & Shares ISA, ISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.
- Investment deadline 2017/18 ISA applications: 5 April 2018
- Investment deadline ISA transfers: 6 April 2018
- Investment deadline for direct and 2018/19 ISA applications: 27 April 2018
* The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty, Investec Bank, to repay your capital.
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.