New fixed income plan: 3.6% 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 0.30% each month (equivalent to 3.6% 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 or above its initial level at the end of each year rom year 1 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: 0.30% (equivalent to 3.6% per year)
Potential to mature early annually from year 1 onwards
Capital at risk product
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: 24 February 2021
Direct & ISA Applications: 10 March 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.