Fixed growth returns and capital protection, no matter how well the FTSE performs…
With low longer term fixed rates forcing some savers to consider a wider range of options, the combination of capital protection plus the potential for a high growth return could be a compelling opportunity.
The 6 Year Defensive Deposit Plan from Investec offers a fixed return of 11.7% provided the FTSE 100 Index at the end of the six year term is higher than value the start of the plan (subject to averaging). If the FTSE 100 is the same or lower you still get a fixed return of 4.2%. Therefore at the end of the term you receive a fixed return and your original capital back no matter how well the FTSE performs.
The best long term fixed rate savings bonds are paying around 1.05% AER whilst by linking your deposit to the FTSE, if this Deposit pays out the 11.7% return is equivalent to 1.95% growth. Tax payers can also benefit from a tax free return as the plan is also available as an cash ISA, and with longer term Cash ISA fixed rates even lower, below the 1.05% AER mark, this could be an appealing alternative.
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.
Fixed return – Either 11.7% if the Index is above the Initial Level, or 4.2% if it is the same or lower than the 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: 6 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: 4 December 2020
Direct & ISA Applications: 23 December 2020
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.