Potential high growth returns and capital protection…
If capital protection is a top priority when considering your options, the chances are the returns on your savings have reduced significantly in recent years, which is where Investec’s FTSE 100 6 Year Deposit Plan could offer an alternative.
The plan will pay a fixed return of 39% provided the FTSE 100 Index at the end of the term is higher than its value at the start of the plan (subject to averaging). As with other deposits your capital is also eligible for FSCS protection but if the Index is lower, you will only get your initial capital back.
By linking your return to the stock market, it is not guaranteed as it would be with a fixed rate bond. However, if the plan does provide the fixed return, it is equivalent to around 5.64% per year (compound), which is considerably higher than other deposit based options.
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 – 39% 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 both 2019/20 and 2020/21 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: 3 April 2020
2019/20 ISA Applications: 3 April 2020
Direct & 2020/21 ISA Applications: 24 April 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.