Structured Deposits

Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances. Please note this is a non-advice service and we do not provide a whole of market view. We will be paid commission by the plan provider upon completion, further details are available on request.

Income Deposit Plans - featured accounts - Products are listed alphabetically

Growth Deposit Plans - featured accounts - Products are listed alphabetically

    • Provider/Product name Investec FTSE 100 Kick Out Deposit Plan 53

      Investec Bank plc

      Investec FTSE 100 Kick Out Deposit Plan 53

    • Description

      Potential return - 4.25% gross for every year the Plan is in force (not compounded)

      Investment term - Maximum 6 Years

      Deposit Taker - Investec Bank plc

      Product is designed to be held for the full term

      The Investec FTSE 100 Kick-Out Deposit Plan 53 is a maximum six year structured deposit plan linked to the performance of the FTSE 100 Index (‘the index’).
      The objective of the Plan is to deliver attractive returns with the potential for early maturity dependent on the performance of the Index.
      The Plan has a 6 year term, but offers the opportunity to mature early after years 3, 4 or 5. To achieve early maturity the average closing levels of the Index for the five business days up to and including one of the Kick-Out Dates must be higher than the Initial Index Level. If the Plan does mature early then it will return 4.25% times the number of years the Plan has been active (not compounded). For example, early maturity at the end of year 3 would return 12.75%.

      If the Plan runs for the full 6 year term and Final Index Level on the maturity date is higher than the Initial Index Level then you will receive a 25.5% return (6 x 4.25%) plus the return of your capital. If the Plan reaches the end of its 6 year term and the Final Index Level is still not above the Initial Index Level you will receive back your initial deposit with no return.

      The Plan is available for Cash NISA, NISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.

      Eligible for the Financial Services Compensation Scheme up to £85,000 for an individual or up to £170,000 for a joint deposit account

    • Go to site

    Limited offer - deadlines apply. May close early if oversubscribed. Plan designed to be held for the full term. Arrangement fees can apply. Returns not guaranteed. You may only receive a return of your original capital

Index-Linked Structured Products - featured accounts

Our structured deposit plans service provides you with information on various structured deposit plans as well as guides to help you decide on the right product for you. We earn commissions based on arrangements we make to introduce you to product providers, further details are available on request. We do not provide you with advice and you should discuss specific product terms with the product provider.

What is a structured deposit?

A structured deposit is essentially a combination of a deposit and an investment product which offers exposure to stock market linked returns whilst providing capital protection.

They are designed to be held for a fixed term, normally between 3 and 6 years, and the return is dependent on the performance of some underlying asset, which is usually the FTSE 100 Index. Unlike fixed rate bonds, these plans have variable returns and, in some case, variable maturities as well. This flexibility in design results in a wide range of options to choose from, whether you are looking for income or growth.

What are the advantages?

A structured deposit offers a balance of capital protection and the opportunity to receive returns which are linked to the stock market and so are often higher than those available from fixed rate bonds. By limiting the overall investment exposure, these plans are also able to offer capital protection, thus providing a return of your capital regardless of the performance of the index.

There are a number of different types of plan available to meet the needs of a wide range of savers. Some are designed with the potential to mature early, whilst others offer the potential for a high level of income each year, so plans can also benefit from a diverse range of market conditions.

What are the disadvantages?

The cost of the capital protection is that savers are unlikely to get the full benefit of any increase in the underlying index or the payment of dividends. The return of capital is also dependent on the solvency of the deposit taker and so you will need to consider carefully which institution you wish to deposit your cash with, as you would with any other savings product.

With flexibility in design also comes a wide range of complexity in how each product works and you should be sure you fully understand the product before proceeding. If the plan does not meet the requirements to achieve the stated level of income or growth and the saver only receives back their original capital, its value may have been eroded by inflation.


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