Capital protected deposit with the potential to pay 3.50% 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 3.50% annual income, could prove to be a strong headline return.
Your income payment is dependent on the value of FTSE 100 Index at the end of each year 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 year.
Therefore, unlike traditional fixed rate bonds the 3.50% annual income is not guaranteed. But with top 5 year fixed rate bonds only paying around 2.5% 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 annual income: 3.50%
Alternative monthly option also available paying potential 0.28% per month (equivalent to 3.36% 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: £1,000,000
Direct & ISA applications: 16 January 2019
ISA Transfer applications: 21 December 2018