Fixed income plan: 3% per year, monthly payments, paid regardless of the performance of the FTSE…
If you’re concerned about low-interest rates and you’re looking for a higher level of fixed income than traditional fixed rate bonds, this new income plan from MB could be a good place to start.
The UK Fixed Monthly Income Plan pays a fixed income of 0.25% each month (equivalent to 3% each year) and has a fixed term of four years. The income is paid regardless of what happens to the FTSE 100 so you know exactly how much you will be paid.
The plan has a maximum term of 4 years, but also offers the opportunity to receive your initial capital back in full before then if the FTSE is at least 5% above its initial level at the end of each year from year 2 onwards. If the plan does not end early, your initial capital is returned in full provided the FTSE has not fallen by more than 35% at the end of the plan term. If it has, your initial investment will be reduced by 1% for each 1% fall, so your capital is at risk.
If the opportunity for fixed regular income no matter how the FTSE performs sounds appealing, this plan could be worth considering.
Fixed monthly income: 0.25% (equivalent to 3% per year)
Potential to mature early annually from year 2 onwards if the FTSE rises by 5% or more
Capital at risk product – 65% barrier
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: Maximum 4 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: 30 November 2021
Direct & ISA Applications: 14 December 2021
Important Information: This is a structured investment plan which is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.