The opportunity for early maturity with capital protection, even if the market falls…
Whilst inflation remains well above the maximum interest you can earn from traditional fixed rate bonds, there is a clear cost to making sure your savings are fully capital protected. By offering a potential 3.75% for each year, this new deposit plan from Investec offers the opportunity for higher returns, as well as protecting your capital.
The FTSE 100 Kick-Out Deposit Plan offers capital protection plus a potential 3.75% per year (not compounded). The plan will mature early or ‘kick-out’, provided the level of the FTSE 100 Index is above the required level at the end of each year. The required level is 100% of its starting value at the end of year 3, then reducing by 5% each year thereafter, down to 85% in the final year. So the plan could offer 4.5% returns, even if the FTSE falls almost 15%. If the Index is lower than the required level on all of these dates, you will only receive a return of your initial deposit.
With market leading 3 to 5 year fixed rates currently offering around 2.20% to 2.40%, by linking your return to the FTSE this plan offers the opportunity to beat low savings rates, whilst still including the capital protection that many savers demand.
Potential return: 4.0% gross for every year the Plan is in force (not compounded)
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: Maximum 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: 17 January 2020
Direct & Applications: 31 January 2020
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.