Lump Sum Investments

Lump Sum Investment Options

See below for lump sum investment options for those who have accumulated capital on deposit and wish to find a long term home for their money.

See below for a number of options for your lump sum investments:

Growth Structured Deposits
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Retirement Deposit PlanInvestec Bank plcyes6 years

3.75%

per year, plus 22.5% at end of term

More Info >
  • 3.75% annual payments from capital
  • 77.5% remainder of initial deposit paid at end of term
  • Potential 22.5% growth return at end of term, if the Index is higher than 90% of Initial Value
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA and  ISA Transfers 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Only available for new ISA investments or ISA transfers, not direct investments
  • 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

12%

at end of term

More Info >
  • 12% 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
6 Year Defensive Deposit PlanInvestec Bank plcyes6 years

24%

at end of term

More Info >
  • 24% 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
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.

Although deposit accounts are a good home for lump sum investment over the short term or for those who do not wish to take any risk at all with their capital, some exposure to other asset classes, for example, company shares, fixed interest securities and property, can significantly increase the potential investment returns, helping to protect your capital against the effects of inflation and increasing its value in real terms.  The proportion of each different type of investment held will differ according to the level of investment risk that you are willing to take.  Of course, the value of these types of investment can rise and fall and the returns are not guaranteed.

 

Lump sum investment has the advantage that your capital is invested in the market at a single point in time, unlike when investing on a regular basis where the market could rise as you invest.  Lump sum investment enables you to take full advantage of all the increases in investment values after your investment has been made. 

 

Examples of lump sum investments include unit trusts, pension schemes, investment trusts, open ended investment companies (OEICs), National Savings products and investment bonds and by investing in a combination of these, you will gain access to company shares, fixed interest securities, cash deposits, commercial property enabling you to balance your portfolio between the investment returns required and the level of investment risk that you are willing to take.

 

 

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

10%

per annum

More Info >
  • 10% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Alternative collateralised options also available returning a potential 9.2% / 8.1% 
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline ISA transfer applications - 2 December 2016  
  • Investment deadline for direct and ISA applications - 16 December 2016 
  • 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
FTSE 100 Defensive Growth PlanInvestec Bank plcyes6 years

34.0%

after 6 years

More Info >
  • 34% after 6 years provided the FTSE 100 finishes above 50% of its starting value
  • Available for ISA, and ISA transfer
  • Investment deadline ISA transfer applications - 2 December 2016
  • Investment deadline for ISA applications - 16 December 2016
  • Capital is at risk if the FTSE 100 Index 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
  • Minimum investment £3,000
  • Only available for new ISA investments or ISA transfers, not direct investments
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE 100 Step Down Kick-Out PlanInvestec Bank plcyesUp to
6 years

8.25%

per annum

More Info >
  • 8.25% for each year (not compounded) provided the FTSE 100 finishes above kick out level
  • Kick out level reduces from 100% to to 80% over the term
  • Potential to mature early, from year 2 onwards
  • Alternative collateralised option available paying 7.4% with 40% capital at risk barrier but additonal protection from 5 UK financial institutions
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline ISA transfer applications - 2 December 2016
  • Investment deadline for direct and ISA applications - 16 December 2016
  • 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.
Income Funds
 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Newton Asian Incomeyes5.43%More Info >
Newton Higher Incomeyes5.4%More Info >
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below. 

Growth Funds

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below. 

It is imperative that when considering any lump sum investment that you seek professional advice from a specialist, such as an independent or whole of market adviser, who will be able to go through your options with you in detail, taking into account your circumstances, your objectives and attitude to investment risk.

Speak to an expert about your lump sum investments today >>

 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.