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iDAD Callable Income and Growth Deposit Plan


Invest and gather Income returns of up to 4% with the new Goldman Sachs Deposit Plan –

The new Callable Income and Growth Deposit Plan issued by Goldman Sachs International and promoted by iDAD (Investment Design and Distribution), promises to pay investors 0.75% each quarter provided the FTSE100 is above 85% of its initial level.

With the index currently trading at 7317 (01/04/2019) that would mean the coupon is paid on any quarterly date where the index is above 6220.

To give some point of comparison the FTSE 100 was last below this level briefly in the winter of 2015/16 and in spring 2013 before that. Although markets can always fall below this level again, investors can take further comfort from the fact that inflation has grown by on average 2.9% per annum over the last eight years according to the Bank of England’s inflation calculator.

Additionally, the deposit plan pays investors 100% of any rise in the UK’s largest shares as measured by the FTSE 100. When iDAD looked at how often the index had a positive performance over the last 20 years, they found that over 78% of the time, it did.

This potential upside coupled with no chance of losing money unless Goldman Sachs International becomes insolvent or the plan is surrendered early (eligible investors also benefit from the financial services compensation scheme for amounts of up to £85,000) makes for a compelling story.

A twist but not a turn


• There is an unusual feature to this deposit (which is why it is Callable), which says that the bank can terminate the deposit and return investors’ money on any quarter (after 12 months) so long it pays 1% per annum to compensate investors (on top of the 0.75% quarterly amount it pays for the index not falling 15%).

• To summarise, this deposit would suit investors with the following outlook:

• Happy and capable of investing their money for up to eight years

• Prioritise capital protection

• Seeking an income of between 3%-4% per annum

• Understand that if the FTSE 100 falls by 85% or more, no income will be paid

• Expect the FTSE 100 to remain above 85% of its current level

• Have the view that the FTSE 100 will have a positive performance over the mid-to-long term

You may be interested to read the independent FVC Structured Edge Research article by clicking on the following link:

Income Plans

There are few quality (Capital secure) plans available in the market presently. The above plan is certainly worth holding as part of an overall investment portfolio.

Don’t forget the Risks

It must be clear that the presentation of the above plan does not reflect ‘advice’ being provided. Advice is always specific to an investor’s needs, considering their capacity to suffer loss, time horizons and personal tolerance to risk. If you require ‘advice’ simply get in touch.

Best Regards.


Best Price FS Team

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