High Income Plan: up to 4.6% income per year even if the market falls, plus quarterly payments…
Are you looking for the following: high income even if the FTSE falls 20%, regular payments, a return of capital even if the FTSE has fallen up to 35% in 6 years’ time? If so, this income plan from Walker Crips could offer all of this, and if held within an ISA, the income is also tax free…
The UK Conditional Income Kick Out Plan measures the closing level of the FTSE 100 Index at the start of the plan, and then at the end of each quarter thereafter. Provided the Index has not fallen more than 20% below its starting level, you will receive 1.15% income – that’s a potential 4.6% per year.
The plan has a maximum term of 6 years, but also offers the opportunity to receive your initial capital back in full before then if the FTSE has risen by any amount 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.
The combination of high interest even if the FTSE falls 20%, and some capital protection even if the FTSE falls 35%, could offer a compelling balance of risk versus reward.
Potential quarterly income: 1.15% (equivalent to 4.6% annually) if the FTSE 100 Index doesn’t fall by more than 20%
Potential to mature early annually from year 2 onwards if the FTSE 100 Index rises by any amount
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 6 Years
Arrangement fee applies
Minimum single investment: £10,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 29 October 2021
Direct & ISA Applications: 12 November 2021
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.
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.