Capital protected plan with the opportunity for 1.5% growth pa and early maturity…
The MB UK Kick Out Deposit Plan offers a potential 1.5% interest per year (not compounded). Although it has a maximum term of seven years, it will ‘kick out’ early provided the value of the FTSE 100 Index at the end of each year from year 4 onwards, is the same or higher than its value at the start of the plan.
That’s a potential 6% after four years, 7.5% after five years, etc. The downside is that the return is not guaranteed, and so if the FTSE ends lower at the end of each year, you only get your initial capital back at the end of the full 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.
1.5% pa may not sound like its going to change the world, but with the best long term fixed rate deposit is currently offering less than 1%, and the rate for a fixed rate Cash ISA even less this new deposit plan from MB could be an appealing alternative.
Potential return: 1.5% gross for every year the Plan is in force (not compounded)
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 7 Years
Arrangement fee applies
Minimum single investment: £3,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 15 March 2021
Direct & ISA Applications: 29 March 2021
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.