With less than a week to go until the deadline for using your 2012/13 Investment ISA allowance (£11,280), this is your last opportunity to protect your returns from the taxman. With the 5th April end of tax year deadline close at hand, we bring you our selection of the best investment plans currently available to help you decide how best to make use of this valuable tax break.

Defined Returns

These plans offer you a defined return for a defined level of risk, which means that you know the exact terms of the plan prior to investing and exactly what needs to happen in order to provide you with the stated income or fixed return.

Conditional capital protection

Unlike investment funds – where all of your capital moves in line with fluctuations in the market – these plans contain what is known as conditional capital protection. This means that you will receive a return of your capital at the end of the investment term, as long as any fall in the value of the FTSE has not exceeded a specified amount, normally 50% of its starting value.

To give you an idea of where others are putting their money, we’ve listed our Top 5 most popular Investment ISA plans below:

1.  Investec Enhanced Income Plan

Top of the list is the Enhanced Income Plan from Investec which pays a fixed income of 6% (0.5% each month) regardless of what happens to the FTSE. This plan requires a minimum of £3,000 initial investment. Click here for more information »

2.  Gilliat Step Down Income Builder

The Step Down Income Builder from Gilliat accrues income for each week the FTSE 100 Index stays above certain limits up to a maximum of 6% each year. An arrangement fee applies to this plan. Click here for more information »

3.  Investec Enhanced Kick Out Plan

Investec also offer our most popular growth plan with their Enhanced Kick Out offering the potential to mature early and return 9% for each year the plan has been in place. The plan has a 5 year investment term but will mature early if the FTSE finishes higher than its starting value. The minimum investment is £3,000. Click here for more information »

4.  Morgan Stanley Defensive Bonus Plan

For those with a more defensive view of the FTSE, Morgan Stanley’s Defensive Bonus Plan offers 7.25% per year (not compounded) if the FTSE has not fallen by more than 5% at the end of each year (from year 2 onwards), with a minimum investment of £3,000. Click here for more information »

5.  Investec Defined Returns Plan

Finally, Investec feature once again with their Defined Returns Plan which offers an impressive fixed return of either 40.5% after three years or 67.5% at the end of year 5 provided the FTSE finishes higher than its starting value at either point (subject to averaging). An arrangement fee applies to this plan. Click here for more information »

How to apply

When you click for more information on any of the above plans you will be able to request a brochure pack which will be sent to you by post and email. With the 2012/13 ISA deadline imminent, you may not receive the postal pack in time so we recommend you print and complete the application form contained within the email brochure pack attachments.

Important note – don’t miss out

Please be aware that completed 2012/2013 ISA application forms must be received by us no later than Thursday 4th April 2013 and so the use of next day delivery services should be considered.
 
Remember that all of the above plans also allow you to apply for next year’s Investment ISA allowance (£11,520) as well as accepting transfers and non-ISA investments. If you have any questions on how to apply please contact our Customer Services team on 0845 308 2525.

Click here to compare our top investment ISAs »

No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment. If you are at all unsure of the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice. Tax treatment depends on your individual circumstances and may be subject to change in the future.

These are structured investment plans that are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment. 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.

© Fair Investment Company Limited