Capital protected deposit with the potential to pay 2.76% 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 2.76% annual income (paid monthly), could prove to be a strong headline return.
Your 0.23% 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 2.76% income is not guaranteed. But with top 5 year fixed rate bonds only paying around 2.4% and fixed rate Cash ISAs offering considerably less, the potential to beat low savings rates could be a compelling one.
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.
Potential monthly income: 0.23% (equivalent to 2.76% 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: 16 August 2019
Direct & ISA applications: 6 September 2019