Annual Locked-In Return Plan 6
6 Year Plan that locks in a potential return each year that the FTSE 100 Index is at or above the Initial Index Level, allowing clients to benefit from any annual growth.
Future Value Consultants (FVC) report
- Offer Opens: 23 May 2012
- Offer Closes: 18 July 2012
- Plan Issue Date: 15 August 2012
- Strike Date: 15 August 2012
- Index Level at Strike Date: 5833.04
- Indicative Re-Purchase Price: 95.17% as at close of 12 June 2013
The Annual Locked-In Return Plan 6 is Structured Deposit that offers the opportunity to lock-in a potential return each year that the FTSE 100 Index is at or above the Initial Index Level. Any cumulative returns will be paid out at maturity, as well as the Original Investment*.
The FTSE 100 Index level will be recorded at each anniversary over the 6 year fixed term, at which time if the level is at or above the Initial Index Level, the Plan will lock-in a return of 6.50% gross of the Original Investment. For any year that the recorded Index Level is below the Initial Index Level, no return will be locked-in.
The maximum gross return from this plan is 39% of the Original Investment at maturity (equivalent to 5.64% AER variable**); the minimum is the return of the Original Investment only.
‘Early Bird Interest' is available on this Plan. Interest is paid into the Plan at a rate of 0.50% gross pa/AER* (fixed) and is accrued on a daily basis from the evening your client's cleared funds are received up to and including the day prior to the Commencement Date.
Annual Locked-In Return Plan 6 offers not only the option to be opened via a cash ISA or cash ISA transfer, but can also be held within an offshore bond, SIPP or SSAS. The minimum deposit £5,640. Offer closes 18th July 2012 or earlier if sold out.
* The Original Investment will be held on deposit by Cater Allen Private Bank. This will ensure the return of the Original Investment if the Plan is held to maturity on 17th August 2018. The capital protection depends on the continued solvency of Santander UK plc.
** AER stands for Annual Equivalent Rate. This shows what the interest rate would be if we paid interest and added it to your client's plan each year. Your client's return will only be paid at the end of the term. Gross is the rate before the deduction of the basic rate of income tax, currently 20%. Unless the return is the fixed maximum [of 39% gross], the AER is variable and will depend on the performance of the FTSE 100 Index.