Capital protected deposit with the potential to pay 2.52% income pa…
Most savers have two main priorities in mind when looking at their options – is my capital protected, and what rate of return is on offer? The FTSE Income Deposit Plan from Investec is fully capital protected and with the potential for 2.52% annual income (paid monthly), could prove to be a strong headline return.
Your 0.21% income payment is dependent on the value of FTSE 100 Index at the end of each month finishing higher than 75% of its value at the start of plan (subject to averaging). If the Index finishes at or below 75% no income will be paid for that month.
Therefore, unlike traditional fixed rate bonds the 2.52% income is not guaranteed. But with top 5 year fixed rate bonds only paying around 2.05% and fixed rate Cash ISAs offering considerably less, the potential to beat low savings rates could be a compelling one.
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.
Potential monthly income: 0.21% (equivalent to 2.52% pa)
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: 22 November 2019
Direct & ISA applications: 13 December 2019
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.