The potential for 5.7% after 3 years, capital protected…
Regardless of what happens to interest rates and inflation in the next few years, we are unlikely to see any significant upward shift in the level of traditional savings rates on offer.
The FTSE 100 3 Year Deposit Plan from Investec offers an alternative for your savings with a potential 5.7% return after 3 years, provided the FTSE 100 finishes higher than its starting value (subject to averaging). As this is a deposit, your capital is also eligible for FSCS protection.
The upside is that the potential return equates to 1.9% per year (not compounded), which is considerably higher than the best fixed rate deposits on offer. The downside is if the FTSE ends lower, you only get 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 – 5.7% if the Index if higher
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 for ISA transfers and non-ISA investments: £3,000,000
ISA Transfer Applications: 23 October 2020
Direct & ISA Applications: 6 November 2020