FTSE 100 3 Year Bonus Income Deposit Plan 3

Investec

FTSE 100 3 Year Bonus Income Deposit Plan 3

The aim of the plan is to provide income payments of 3% per annum over the 3 year term if the FTSE 100 is higher than 95% of its starting level on each anniversary. Memory feature means that any missed income payments are added to any subsequent successful income payment.

  • Potential return: 3 % per annum
  • Product type: Deposit Based
  • Investment type: Income
  • Closing Date: 16 March 2018
  • ISA Transfer: 23 February 2018
  • Start Date: 26 March 2018
  • Maturity Date: 26 March 2021
  • Market / index link: FTSE 100 Index
  • Counterparty: Investec Bank plc
  • Investment term: 3
  • Kick-out / Early maturity: No
  • Barrier type: Not Applicable (Structured Deposit)
  • Barrier level: N/A
Important: The closing date for applications by cheque is 7 March 2018 and by bank transfer is 13 March 2018.

Product Literature & Forms

You should always read the relevant plan brochure and any other plan documentation, for full details of the plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document ('KID'), that you should consider, before deciding to invest in the plan.

If you do not fully understand the risks or are unsure as to the suitability of the investment, please contact us

Complete the form and we will email you the requested literature and instructions on how to invest.

Select the application form you require

How to Invest?

1 Firstly, print off and complete our Appropriate Assessment Questionnaire. All applications require two proofs of identity - see the questionnaire for more information.

2 Next download, print and complete the application form available. Note that product applications will have multiple documents, so please choose the one relevant to you.

3 Place all completed documents - questionnaire, proofs of identity, application form and cheques for payment - in an envelope and post to:

Best Price Financial Services,
The Tythe Barn, 5 Eglwys Nunnydd,
Margam, Neath Port Talbot
SA13 2PS

Further Information

The aim of the FTSE 100 3 Year Bonus Income Deposit Plan 3 is to make annual income payments over 3 years and to return at maturity an amount equal to 100% of the initial investment.

Your initial deposit will be returned at maturity, regardless of any fall in the FTSE 100.

The Income Observation Dates are each anniversary of the Start Date. On each Income Observation Date, if the closing level of the FTSE 100 is higher than 95% of the Initial Index Level, you will receive an income payment of 3%.

If the closing level of the FTSE 100 is equal to or lower than 95% of the Initial Index Level, no income payment will be made for that year. The missed payment will be rolled up and added to the next successful income payment, if one is made.

If the FTSE 100 is equal to or lower than 95% of its starting level on every anniversary of the Start Date, no income payments will be made, however their initial deposit will be returned at Maturity.

The FTSE 100 3 Year Bonus Income Deposit Plan 3 has been designed for clients looking for income over a 3 year term but who are not dependent on the income to meet living expenses. They do not wish to risk losing their initial deposit and therefore the product is aimed at those who have a relatively low attitude to risk.

Don’t forget the risks

All investments carry risk. It is identifying those risks, understanding how they may affect an investment and assessing whether an investment is suitable for your circumstances that is important.

The potential returns of most structured products and repaying the money invested are usually linked to the level of a stock market index and also depend on the financial stability of the issuer and counterparty bank. You should only consider investing if you understand and accept the risk of losing some or all of any money invested.

You should always read the relevant plan brochure and any other plan documentation, for full details of a plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document (‘KID’), that you should consider, before deciding to invest in a plan.

Structured products should only be considered as part of a diversified and balanced portfolio.

Below is a summary of some of the main risks usually associated with an investment in structured products plans:

Market risk to potential returns

Whether or not a plan generates the potential returns for investors usually depends on the closing level of the relevant index on the relevant dates for the plan, i.e. the kick-out anniversary dates for kick-out products; the early maturity dates and end dates for growth products; the annual income dates for income products.

If the index closes below the level needed, for the plan or plan options chosen, on all of the relevant dates, the plan or plan options will not generate a return.

Market risk to repayment of money invested in 'Capital-at-Risk' plans

If the closing level of the relevant index is below the level needed on all of the kick-out anniversary dates or early maturity dates, if relevant for the plan or plan options chosen, and on the end date, repaying the money invested at maturity will usually depend on the closing level of the index on the end date..

Different structured products use different types of protection barriers. Some products use barriers that are observed every day that can therefore be breached on any day during the investment term, while some products use barriers that are only observed at the end of the investment term and that cannot therefore be breached during the investment term.

Market risk to the repayment of money invested on the end date will depend on the type of barrier and its level.

For example, for a product with an end of term barrier, set at 60% of the start level, if the index for the plan closes at or above 60% of the start level, on the end date, money invested will be repaid in full (less any agreed adviser fees and withdrawals). However, if on the end date the index closes below 60% of the start level, the amount of money repaid (less any agreed adviser fees and withdrawals) will be reduced by the amount that the index has fallen. For example, if the index has fallen by 45%, the repayment of money invested will be reduced by 45% (meaning that investors will get 55% of their investment back).

'Protected' types of structured products

Some structured product plans are designed so that they are 100% protected from stock market risk at the end date.

It is important to understand that even if a structured product plan is designed with 100% protection from stock market risk, at the end date, it will still usually have issuer and counterparty bank risk. In other words, both the potential returns of the plan and repaying the money invested at the end date will depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.

Issuer and counterparty bank risk

Both the potential returns and repaying the money invested of most structured products depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.

Financial Services Compensation Scheme ('FSCS') protection

It is important to understand that it is not usually possible to claim under the Financial Services Compensation Scheme if the issuer and counterparty bank fail to meet their obligations or if the stock market index that a plan links to falls.

Structured deposits

Structured deposit plans are deposit-based and will usually be fully protected from stock market risk at the end date and also benefit from the protection of the Financial Services Compensation Scheme, if the bank or building society is a licensed UK deposit taker.