5% Interest Even If The FTSE 100 Falls Almost 40% – Super defensive Investment Plan
Two opportunities for high interest…
“The term ‘super defensive’ is what we use to describe one of the investment options on offer from our most popular income plan.
This option will pay 1.275% at the end of each quarter, provided the FTSE 100 Index has not fallen by 40% or more below its value at the start of the plan (subject to averaging) – that’s a potential 5.1% per year interest, even if the FTSE falls almost 40%. If the Index does close below this level, no income is paid for that quarter.
The plan has a maximum term of 8 years, but also offers the opportunity to receive your initial capital back in full before then, if the FTSE has risen by more than 5% 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 40% at the end of the plan term. If it has fallen below this level, your capital will be reduced by 1% for each 1% fall, so this plan does put your capital at risk.
In a sustained period of low interest rates, the ability to receive over 5% even if the market falls almost 40%, might be appealing to wide range of investors.
Oliver Roylance-Smith, head of savings and investment
LIMITED OFFER: current issue ends 19th July 2019.
Capital is at risk. This is a structured investment plan that is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income payments are not guaranteed and there is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.
There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment 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.
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