Capital protected savings alternative, also available as a cash ISA…
For those looking for capital protected alternatives for their savings and Cash ISAs, the potential 3.75% interest payment on offer from Investec’s FTSE 100 3 Year Defensive Deposit Plan could be a compelling option.
The plan compares the value of the FTSE 100 Index at the beginning and the end of the term, and provided it has not fallen by 10% or more, pays a fixed return of 3.75% (tax free if held in an ISA). This is equivalent to 1.25% growth each year, which is more than medium term savings rates at present.
As with other deposits your capital is also eligible for FSCS protection. However, unlike fixed rate savings accounts your return is not guaranteed and so you could only receive your initial capital back.
Important Information: 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.
Target return – 3.75% if the Index is above 90% of its Initial Level
Capital Protected Product
Eligible for the Financial Services Compensation Scheme up to £85,000 for an individual or up to £170,000 for a joint deposit account
Available for Cash ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: 3 Years
Arrangement fee applies
Minimum single investment: £3,000
Maximum ISA investment: £20,000
Maximum investment for ISA transfers and non-ISA investments: £3,000,000
ISA Transfer Applications: 29 January 2021
Direct & ISA Applications: 12 February 2021