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IDAD launch new RBC FTSE 100 Income Deposit Plan for August 2022
IDAD have just launched a new 5 year 2 week Income Deposit Plan linked to the performance of the FTSE 100 Index.  Please find below a summary of the investment, together with a link to obtain further details, along with the Brochure and Key Information Document.
IDAD RBC FTSE 100 Income Deposit Plan August 2022Investment Term: 5 years 2 weeks

Interest Rate:  6% per annum (1.50% per quarter) paid quarterly if the underlying Index is at or above its Start Level on each observation date prior to its maturity date.

Deposit Taker: Royal Bank of Canada (London Branch)

How the Investment works   

This is a 5 year 2 week Deposit Plan linked to the performance of the FTSE 100 Index.  The Deposit Plan is constructed to offer a potential return of 6% per annum (1.50% per quarter) paid quarterly if the underlying index is at or above its Start Level on each quarterly observation date prior to maturity date.  Full capital will be returned regardless of the underlying performance.

The opportunity for full capital protection and growth is the key aim of this investment.

The investment is linked to the FTSE 100 Index (see page 7 of the Brochure for full details) and investors will earn interest even in flat market conditions.

The initial investment into the Deposit Plan, minus any Initial Adviser Fee, will be returned in full at Maturity.

Click here for more details of the iDAD RBC FTSE 100 Income Deposit Plan August 2022

About Royal Bank of Canada (RBC):  Royal Bank of Canada is a diversified financial services company.  The Company provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services.  Royal Bank offers its services to personal, business, public sector and institutional clients with operations worldwide.

RBC are the Deposit Taker for the Income Deposit Plan therefore investors are exposed to the risk of them defaulting on their obligation to repay the capital and any returns due under the terms of the Deposit Plan.

Credit Ratings

Credit rating is an analysis of the credit risks associated with a financial entity.  These ratings based on detailed analysis are published by various credit rating agencies like Standard Poor’s, Moody’s and Fitch.


Don’t Forget the Risks

As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk.  The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure.

At the Best Price FS price point the iDAD Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team

Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.