New Launch: Potential 8% income + capital protection
The biggest problem for both savers and investors this ISA season is finding a high enough level of income that could beat inflation and still offer a decent overall return. With the potential for 8% income each year, the Money Builder Deposit Plan from Societe Generale offers the opportunity to do both.
Your return is based on the performance of five FTSE 100 companies rather than the Index itself. Provided all five shares are at or above 95% of their starting levels at the end of each year, you will receive an 8% payment. If one or more shares are below this level, no income will be paid.
Unlike a fixed rate bond, the headline return is not guaranteed, which is an important consideration. The potential return on offer is, however, well over double those available from market leading fixed rates – and with the possibility of interest rates remaining low for several years to come, this plan deserves a closer look.
This is a structured deposit plan and 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 x5 FTSE 100 shares is not a guide to their future performance.
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.