Written by Editorial Team
12th September 2019

High Interest Investment Plan: 7% pa Unless The FTSE 100 Falls 20%

Latest issue offering a potential 7.0% p.a. interest…

The Defensive Income Plan has already had a strong year in terms of popularity, whilst the recent increase to a potential 7.0% interest from the latest issue, is the highest headline rate to be offered since April.

The plan will pay 1.75% 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 7.0% 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.

Inflation seems to be an issue for us all at the moment, so receiving 7% per year even if the stock market has fallen almost 20%, makes for a compelling headline. Add in the additional feature of having your capital returned unless the FTSE falls at least 40%, and this plan really does have a lot to shout about.”

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Oliver Roylance-Smith, head of savings and investment

 

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