New ISA plan offering potential 8% pa interest or 2.5x any rise in the FTSE 100 Index with no upper limit
“With the best traditional savings rates offering around 2.7% per year, and significantly lower for Cash ISAs, the potential for 8% from a plan with full capital protection makes for a compelling headline.
The callable deposit plan has only just launched, and offers two potential returns. The first is if the deposit taker decides to ‘call’ (end early) the plan, which it can do at the end of each quarter after the first year. If it does, you will receive 2% for each quarter since the start of the plan, equivalent to 8% interest per year (not compounded).
However, If the deposit taker does not end the plan early and it runs the full six years, you will receive 2.5 times any rise in the FTSE 100 Index over the term of the plan, with no upper limit. For example, if the FTSE rises 10%, you will receive 25%, along with a full return of your initial capital. If the FTSE is lower at the end of the term, you will not receive any interest and only a return of your original capital.
With traditional savings rates failing to inspire, this plan offers the potential for significantly higher returns but without risking your capital.”
Eligible deposits in the IDAD Callable Deposit Plan are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit protection scheme.
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 deposit 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 deposit if the plan is not held for the full term. The past performance of the FTSE 100 Index is not a guide to its future performance.
Tax treatment of ISAs depends on your individual circumstances and legislation which are subject to change in the future. ISA transfer charges may apply, please check with your provider.
Fair Investment Company does not offer advice and any investment transacted through us is on a non-advised basis. If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.