Due to the government recommendations on the Coronavirus pandemic our office is running at a reduced capacity. As a result there may be delays in processing investment applications. We therefore recommend sending in your completed application well in advance of any deadline. Please note the providers we deal with are operating on a business as usual basis. Thank you for your understanding.

Investments That Pay Monthly Income

With UK interest rates currently at rock bottom levels the search for income has never been greater when it comes to making your capital work.

For people in retirement this is particularly true where the rates of interest you could enjoy on fixed rate bonds ten years ago have more than halved. The current climate means that if you are relying on cash to give you an income then your capital is likely to be eroding in real terms as inflation is running at 2+ %.

The reality is that if you want to get a higher yield from your money, cash is unlikely to give you what you want. You may need to consider taking on some exposure to capital risk to achieve higher returns. We have highlighted some ideas  for investors to consider in the search for monthly and quarterly income. These plans provide defined returns over a defined term.

The investment plans featured on this site have defined investment terms where the investment objectives and investment risks are clearly outlined in the plan literature available on request.

The investment plans we feature can be classified under two categories – deposit plans and investment plans.

Deposit Plans

Deposit Plans or Structured Deposit Plans offer a return of initial capital and a potential return linked to the performance of an underlying asset such as the FTSE 100. These plans are cash based and should be seen as an alternative to cash deposits such as fixed rate bonds.

They are taxed in the same way as cash deposits ( returns are generally taxed as income in the hands of investors) and are attractive to risk averse investors as they are given the same protection falling under the Financial Services Compensation scheme (FSCS).

Investment Plans

Investment plans or structured investment plans are designed to meet the requirements of different investors as either a complement or alternative to traditional direct equity or fund investment.

Plans are designed taking into account investment risk versus investment return, protection and timescales. Structured investment plans are typically equity linked and provide exposure to market risk but often with protection built in so restricting the upside but also mitigating the downside.

This balance of risk is attractive particularly in uncertain markets. Plans are backed by major financial institutions who provide the assets for the plan (known as the counterparty). Investment returns from investment plans often fall under CGT tax rules which can be attractive particularly to higher rate tax payers.

Both structured deposit and investment plans provide investment opportunities allowing investors to make investment returns on markets over set periods of time while maintaining a level of risk control.

Investors depending on their plans can also gain access to a range of alternative asset classes including world major equity indices, commodities and currencies. Most of the investment plans featured on this site are equity linked and offer different levels of capital risk and market exposure.

Capital at risk plans often offer features to reduce risk exposure to market falls by the use of a barrier. Typically the barrier will be set at 40% of the initial level of the underlying asset.

The two main types of barrier are the final day barrier (European barrier) where the underlying asset is only observed on the final day of the investment. Variations of the European barrier may include plans where the barrier is based on the value of the underlying asset based on average e.g. an average of the underlying asset over the last 3 months of the plan. This averaging again is a risk control reducing the impact of any sudden falls in the last stages of an investment term, although conversely it can also restrict growth potential in a rising market.

The second type of barrier often used is the closing/intra day barrier (American barrier) where the value of the underlying asset is observed throughout the life of the investment plan on a daily basis. In the event of a breach of the barrier the capital invested will be at risk in some way depending on the plan terms.

With investment plans an individual savings account (ISA) can be used as a wrapper to provide investors with tax efficient returns. For 2019/20 the HMRC set ISA allowance is £20,000 per individual, which can be used in full in either a deposit plan or an investment plan, or split between the two.

In assessing the top investments ideas we make a distinction between income and growth investors and provide a range of options depending on your requirements:

Growth Investments

For investors seeking growth investment opportunities on this site we feature a range of different plans that have different features.

The investment plans we promote may include kick out investment plans which offer investors a pre-determined rate of return based on the performance of the underlying asset performing sufficiently well at a given series of dates.

Accelerated Growth Plans which offer investors the potential of leveraged exposure to the upside performance of an underlying asset. Digital plans that offer a fixed investment returns providing the plans requirements are met. Typically these plans will either return the original capital and the payoff or just the original capital.

Income Investments

For investors requiring income we regularly offer a range of income investment plan options. For investors who require capital protection deposit based plans can provide an attractive alternative to fixed rate bonds although income payments will be linked to the performance of an underlying asset so are usually not guaranteed. For investors who are comfortable with capital risk, reverse convertible or income plans provide a fixed income on a monthly, quarterly or annual basis. With these plans income payments are fixed and capital will be returned as long as the underlying asset does not fall below the set barrier.

Investment ISAs

Using your ISA allowances should be your first port of call when investing to mitigate any tax resulting from income or capital gains. With an investment ISA you can invest up to £20,000 per individual. Most investment plans and investment funds can be placed in an ISA, although always check the terms and conditions.

In considering the best investment and savings options for you could also consider the following:

High Interest Savings Accounts

If you need short term access to your money, high interest savings accounts provide a way for savers to get a better rate of interest with capital security. Notice savings accounts which require savers to provide notice before withdrawing savings of anything up to 180 days often pay better interest than easy or instant access savings accounts.

Cash ISAs

If you looking to save tax efficiently for the 2018/19 tax year you can put up to £20,000 per individual into a cash ISA and shelter any interest from the taxman.

Fixed Rate Bonds

If you are happy locking up capital for a set period of anything from 6 months to 5 years a fixed rate bond will generally provide higher interest rate returns than instant access savings accounts. Fixed rate bonds are a low risk investment as your original capital will be returned at maturity.

Fund Supermarket

For investors looking to invest in funds we offer a fund supermarket service which allows you to select your own income or growth funds at low cost. With over 1500 funds to choose from including many of the top investment performing funds with most available at no initial charge and many with discounted annual charges you can choose from some of the best investment funds available in the UK, including funds that have a low risk investment profile to funds that provide the potential of higher returns but also with a higher risk to capital.

Our Fund Supermarket service provides you with online access to your investment accounts 24/7 so you can monitor fund performance.

High Growth Investment Plan

Investec FTSE 100 8 Year Kick Out Plan

Potential Return – 9.5% pa

  • Potential early return in years 2, 3, 4, 5, 6, and 7 
  • Return paid if start level of the FTSE 100 goes up by any amount on an annual observation date
  • Up to 8 year term
  • ISA Option
  • Invest from £3,000

Capital at risk

More information »

Investment Income Plans

Plan Name

Meteor FTSE Quarterly Contingent Income Plan

Annual Income
Up to 7.0%
per year
Term
Up to 10 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Investment Growth Plans

Plan Name

Mariana 10:10 Plan

Maximum Potential Return
10% pa
(alternative options: 7% or 8.75%)
Term
Up to 10 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

IDAD Callable 4 x FTSE SuperTracker Plan

Potential Return
10.2% pa
or 4 x Index growth
Term
Maximum 6 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Mariana FTSE 4 x Supertracker Plan

Potential Return
9% pa
or 4 x Index growth
Term
Maximum 6 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Investec FTSE 100 8 Year Kick Out Plan

Maximum Potential Return
9.5%
per annum
Term
Up to 8 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Investec FTSE 100 Enhanced Kick Out Plan

Maximum Potential Return
9.1%
per annum
Term
Up to 6 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Walker Crips UK Kick Out Plan

Maximum Potential Return
9%
per annum
Term
Up to 7 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Meteor UK Kick Out Plan

Maximum Potential Return
8.5%
per annum
Term
Up to 8 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Investec FTSE 100 8 Year Defensive Kick Out Plan

Maximum Potential Return
7%
per annum
Term
Up to 8 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Meteor UK Defensive Kick Out Plan

Maximum Potential Return
7%
per annum
Term
Up to 7 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

Plan Name

Investec FTSE 100 Step Down Kick Out Plan

Maximum Potential Return
6.25%
per annum
Term
Up to 6 years
ISA Option

Important Information: Structured investment plans 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 due to the performance of the underlying investment. 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.

High Income Investment Funds

Invest From
£25 per month or £100 single
Fund
High Income
Income Yield
5.08%*
Income Paid Monthly
ISA, SIPP & Direct Investment

Why we like it: If you are looking for a high income yield and prepared to accept higher volatility then this fund may fit the bill. With a focus on high yield bonds and shares, the fund manager is an experienced bond investor who has a flexible approach to seeking out the best income opportunities. This fund is available via the Hargreaves Lansdown investment platform.

*Correct as at 22/5/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund
Multi Manager High Income
Income Yield
5.03%*
Income Paid Monthly
ISA, SIPP & Direct Investment

Why we like it: In a world of ultra low interest rates the Hargreaves Multi Manager High Income fund aims to deliver a high monthly income to clients by blending different types of funds and moving between different areas of the market when more attractive opportunities emerge. HL also aim to grow this income payment over time and therefore may invest in higher risk smaller companies they believe offer great potential for long term capital growth.

*Correct as at 30/4/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund
Asian Income
Income Yield
3.70%*
Income Paid Quarterly
ISA, SIPP & Direct Investment Options

Why we like it: If you are looking to access Asia’s exciting growth potential along with a regular income this fund may be for you. Focuses on larger, dividend-paying companies in developed Asian markets, including Hong Kong, Singapore and Australia. Invests in a small number of companies so each can contribute a lot to performance, which can increase risk. The fund aims to pay an attractive income and grow your investment. A focus on companies that tend to be more stable could help the fund fall to a lesser extent than some others when markets are weak. Jupiter has grown to be one of the UK’s most successful and respected investment management groups. This fund is available via the Hargreaves Lansdown investment platform.

*Correct as at 22/5/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund
Money Builder
Income Yield
3.12%*
Income Paid Monthly
ISA, SIPP & Direct Investment

Why we like it:  A fund with a conservative approach to bond investing. The focus is on quality companies that are in good financial health and generate enough cash to keep paying bondholders. Aims to provide a relatively steady income and a small amount of growth, without taking excessive risks. It could help diversify a portfolio focused on shares, or be used as a way to limit volatility during tougher times for stock and bond markets. This fund is available via the Hargreaves Lansdown investment platform.

*Correct as at 22/5/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund
Global Equity Income
Income Yield
2.70%*
Income Paid Quarterly
ISA, SIPP & Direct Investment Options

Why we like it: JP Morgan Asset management is one of the worlds largest and best known brands in investment management. The aim of this fund is to achieve high and rising income by investing globally primarily in equities in any economic sector whilst participating in long term capital growth. This fund is available via the Hargreaves Lansdown investment platform.

*Correct as at 30/4/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund
Ethical Equity
Income Yield
2.27%*
Income Paid Annually
ISA, SIPP & Direct Investment Options

Why we like it: Investing ethically often involves avoiding certain companies or sectors. These constraints mean striking a balance between investing ethically and delivering strong performance is no easy task. The Kames team look at the effects a company’s activities can have on the environment and society and use a strict screening process to find suitable companies. Audrey Ryan then selects the ones with the best long-term prospects, taking into account her views on the UK economy. The fund manager Audrey Ryan is one of few fund managers who have handled the constraints of an ethical fund well over the long run. The fund is available through the Hargreaves Lansdown Platform.

*Correct as at 22/5/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

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. 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.

* Details of how the Financial Services Compensation Scheme applies to investment firms can be found at fscs.org.uk.