- The aim of the Plan is to provide fixed monthly payments throughout the term of the plan.
- You will receive payments of 0.38% monthly regardless of the performance of the FTSE 100 Index, equivalent to 4.56% gross per year.
- Repayment of your initial capital at the end of the term is subject to the performance of the Index.
The Plan benefits from a built in safety net feature, which means as long as the closing level of the Index has not fallen by more than 50% from its Initial Index Level on any business day during the Observation Period, you will receive the full return of your original investment.
Even if the Index has fallen by more than 50% during this time, as long as the Final Index Level is the same as or higher than the Initial Index Level, you will still receive a full return of capital at maturity.
Capital will be at risk, however, if the Index has fallen by more than 50% during the Observation Period and the Final Index Level is lower than the Initial Index Level, in which case you will lose 1% for every 1% the Final Index ends below the Initial Index. As such, this investment is only appropriate for those investors willing to accept the risk that they may lose some or all of their capital.
The Plan is available for 2017/18 Stocks & Shares ISA, ISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.
- Fixed monthly income: 0.38% (equivalent to 4.56% per year)
- Capital at risk investment*
- Investment term: 5 Years
- Arrangement fee applies
- Minimum single investment - £3,000
- Maximum 2017/18 ISA investment - £20,000
- ISA transfers accepted
- Maximum direct investment - £1,000,000
- Investment deadline for direct and 2017/18 ISA applications: 7 July 2017
*The return of your investment depends on the performance of the FTSE 100 Index and the ability of the counterparty (Investec Bank Plc) to repay your money. Full plan details are provided in brochure pack.
"With longer term savings rates currently only offering around 2.20% fixed, ask yourself – is a return of capital unless the FTSE falls by more than 50% a fair trade off for a 4.56% fixed income?"