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 10.5% 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 10.5% (tax free if held in an ISA). This is equivalent to 3.5% growth each year, which is considerably 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.
Target return – 10.5% 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 March 2019
ISA applications for 2018/19: 5 April 2019
Direct & ISA applications for 2019/20: 18 April 2019