Written by Editorial Team
3rd January 2019

2018’s best selling income plan offers potential 8% pa interest

Closing soon: only 2 weeks left to apply…

“It would seem the best way to kick off the New Year would be to take a closer look at our most popular plan from 2018, especially since the headline interest rate on offer is as high as it’s ever been before.

The Defensive Income Plan pays 2.0% at the end of each quarter, provided the FTSE 100 Index has not fallen by 20% or more below its value at the start of the plan (subject to averaging) – that’s a potential 8.0% per year interest.  If the Index closes below this level, no income is paid for that quarter.

The plan has a maximum term of 8 years, but also offers the opportunity to receive your initial capital back in full before then, if the FTSE has risen by more than 5% at the end of each year, from year 2 onwards. If the plan does not end early, your initial capital is returned in full provided the FTSE has not fallen by more than 40% at the end of the plan term. If it has, your capital will be reduced by 1% for each 1% fall, so your capital is at risk.

There is also a second option paying 6.0% per year interest (1.5% per quarter) unless the FTSE falls 40%, and so whether you are defensive, or ‘super defensive’, the plan still offers the opportunity for high interest.”

Oliver Roylance-Smith, head of savings and investment

LIMITED OFFER: current issue ends 16th January 2019

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Capital is at risk. 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. Income payments are not guaranteed and 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.

Tax treatment of ISAs depends on your individual circumstances and legislation which are subject to change in the future. ISA transfer charges may apply, please check with your provider.

Fair Investment Company does not offer advice and any investment transacted through us is on a non-advised basis. 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.