High fixed interest and regular payments: 5.8% per year, fixed for four years with monthly interest payments…
For those looking at alternative options to traditional savings accounts to secure a higher level of regular fixed interest, this plan launch may be timely.
If prepared to include conditional capital protection, the popular FTSE Fixed Monthly Income Plan from Meteor pays 5.8% fixed interest per year (0.4833% paid each month), fixed for four years. Unlike some other plans in this space, there is no early maturity feature, so you know exactly how long the interest will be paid.
The plan also includes conditional capital protection, which means your initial capital is returned at the end of the term provided the FTSE 100 Index has not fallen more than 35% below its level at the start of the plan. If it has, your capital is reduced by 1% for each 1% fall, so your capital is at risk.
With the ongoing impact of high inflation causing real challenges for many, the combination of high fixed income and some capital protection may be attractive to a wide range of investors.
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.
Fixed monthly income: 0.4833% (equivalent to 5.8% annually)
Income paid monthly for full 4 year term of plan, regardless of the FTSE 100 Index performance
Capital At Risk Product – 65% barrier
Alternative option also available with a lower 60% capital at risk barrier, returning 5.6% fixed pa
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: 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: 21 February 2024
Direct & ISA Application: 6 March 2024
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.