Capital protected defensive plan: Potential 6.65% per year growth, even if the FTSE falls by 15% over six years…
The MB UK Step Down Kick Out Deposit Plan offers a potential 6.65% interest per year (not compounded) with full capital protection.
This plan will ‘kick out’ and return your initial capital plus 6.65% for each year invested (not compounded), 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 years 3 and 4, 95% at the end of year 5 and 85% at the end of the 6 year term. So the plan could offer 6.65% annual returns, even if the FTSE falls by 15% at the end of the term.
This product offers the same capital protection as any other savings account, and as a deposit, also includes FSCS cover up to the banks & building societies £85,000 compensation limit. It can also be held as a cash ISA and accepts ISA transfers to take advantage of tax free returns.
Depending on your views of what might happen to the FTSE in the coming years, this plan offers the opportunity for a good level of growth return, even if the market goes down slightly.
Potential Return: 6.65% for each year invested (not compounded), if the FTSE is above required kick out level
Required kick out level reduces from 100% to 85% over the term
Potential to mature early (kick out) each year from year 3 onwards
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: £5,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 9 November 2023
Direct & ISA Applications: 28 November 2023
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.