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Investment News Investment Focus Gilliat Deposit Kick Out Plan 18471745

Investment Focus: Gilliat Deposit Kick Out Plan
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Investment Focus: Gilliat Deposit Kick Out Plan

15 November 2011 / by Oliver Roylance-Smith

Finding a product that offers an attractive solution in the current economic climate is certainly a challenge. However, despite some of the most challenging conditions ever seen, we take a look at one particular solution that is proving popular with both savers and investors alike.

Inflation is a major concern

With the Consumer Price Index (CPI) at 5% and the Retail Price Index (RPI) currently standing at 5.4%, the effects of inflation and the continued period of low interest rates needs to be put under a more intense spotlight.

Fixed rate bonds are often the cornerstone for savers, but a basic rate taxpayer needs to find an account which pays at least 6.25% if they want to match the headline rate of inflation, let alone beat it. Even tieing up your capital for longer falls short of offering a real return and so savers and investors alike are once again left facing tough decisions.

Potential growth of 8.5% per year

This is where the potential for market leading returns combined with the safety net of capital protection offers a compelling alternative.

Gilliat’s latest version of their Deposit Kick Out plan has a maximum investment term of 5 years and your return is linked to the performance of five FTSE 100 companies – BAE Systems Plc, Marks & Spencer Group Plc, Royal Dutch Shell Plc, Barclays Plc and British American Tobacco Plc.

Early maturity occurs if, at the end of each year, the closing values of all five shares meet the required reference level. These levels are 100% of the starting value of all 5 shares at the end of year 1, 95% of the starting values at the end of year 2, 90% at the end of year 3, 85% at the end of year 4 and 80% at the end of year 5.

Should these conditions be met, the plan ends and returns your original capital plus a return equivalent to 8.5% for each year the plan has been in force.

Capital protection

As the plan is a structured deposit you will receive your initial deposit back in full either on early maturity or at the end of the five years regardless of what happens to each of the five shares, and as long as the deposit taker for the plan, the Royal Bank of Scotland (RBS), is able to repay your money.

In the event that RBS is unable to meet its liabilities, the plan would come under the remit of the Financial Services Compensation Scheme deposit protection. This means savers could be eligible for compensation from the scheme up to £85,000 per person if RBS was unable to return the capital invested to savers.

Inflation beating

Head of savings and investments at Fair Investment Company, Oliver Roylance-Smith, said: “The new deposit plan from Gilliat has really thrown open the options available to both savers and investors by combining capital protection with the opportunity to beat the market and receive a return well above the current rate of inflation.”

The plan is open for direct investments, Cash-ISAs and Cash-ISA transfers, as well as to businesses, charities and trusts.

For more information about the Gilliat Deposit Kick Out Plan and to apply, click here »

This is a structured deposit plan that is capital protected. 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 this event you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. 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 and each individual share is not a guide to future performance.

© Fair Investment Company Limited

Growth Structured Deposits
Provider Plan Name Maximum Potential Return* Term More Info
FTSE 100 Kick Out Deposit Plan


per annum

Up to
6 years
More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 6% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.
* Maximum Growth Yields are not guaranteed and subject to certain conditions