"High income even if the FTSE falls..."
This monthly income plan from Meteor offers:
- 0.4167% per month (Up to 5.00% pa): unless the FTSE falls 40% or more
- Tax free income: if held in an ISA, ISA transfers accepted
- Non ISA also available: invest from £5,000 to £1m
- Conditional capital protection: your initial capital returned in full unless the FTSE falls by more than 40%.
The Meteor FTSE Contingent Income Plan January 2019 is a maximum ten year and two week plan linked to the performance of the FTSE 100 Index (‘the Index’).
The Plan has a 10 year term, but offers the opportunity to mature early every quarter from year 2 onwards. To achieve early maturity the level of the Index on a Quarterly Measurement Date must be at least 5% above the Opening Level. If the Plan does mature early then it will return your original capital plus the final income payment.
As long as the Index has not fallen by more than 40% at maturity from the Opening Index Level, you will receive the full return of your original investment.
Any breach in this 40% safety net has the benefit of only being measured at maturity and not throughout the investment term, by comparing the Final Index Level to the Opening Index Level.
If at the end of the plan, the Index is below this 40% safety net barrier, you will lose 1% of capital for every 1% the Index has fallen below its Opening Level.
*Capital At Risk Investment. Full plan details are provided in brochure pack.
"With the current record low interest rate environment, income is high up on the agenda for many investors and so the ability to receive 5.00% per year even if the FTSE falls by up to 40%, is certainly worth a closer look."