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

    • Provider/Product name FTSE 100 Target Income Deposit Plan 12

      Investec Bank plc

      FTSE 100 Target Income Deposit Plan 12

    • Description

      Potential annual income of 4.40%

      Investment term - 6 Years

      Deposit Taker Investec Bank plc

      Product is designed to be held for the full term

      The FTSE 100 Index is measured at the start of the Plan, and then on a yearly basis thereafter. If the average closing level of the Index for the five business days up to and including the anniversary date is higher than 90% of the Initial Index Level a fixed income of 4.40% gross will be paid to you. If the anniversary Index level is equal to or below 90% of the Initial Index Level no income will be paid for that year. However should the Index meet the required level on any future anniversary, any previously missed income payments will be added back and paid out.

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

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    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

Growth Deposit Plans - featured accounts - Products are listed alphabetically

    • Provider/Product name Deposit Kick Out - June 2014

      Gilliat

      Deposit Kick Out - June 2014

    • Description

      Potential return - 7.50% gross x number of years invested

      Investment Term - Maximum 6 Years

      Deposit Taker Lloyds Bank plc

      Product is designed to be held for the full term

      The Plan offers the opportunity for fixed returns linked to the performance of five FTSE 100 stock market listed companies: Glaxo, Rio Tinto, Royal Dutch Shell, Tesco and Vodafone Group. If on any yearly Observation Date from year two to year five the levels of all five shares are at or above their respective initial levels, the Plan will mature early returning your original capital plus 7.50% for each year the plan has been active. If one or more shares are below their initial levels then the plan will continue until the next Observation Date.

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

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    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

    • Provider/Product name FTSE 100 5 Year Deposit Plus Plan 3

      Investec Bank plc

      FTSE 100 5 Year Deposit Plus Plan 3

    • Description

      Potential return of 26% gross or 100% of any rise in the FTSE 100 Index if higher (no cap)

      Investment term - 5 Years

      Deposit Taker Investec Bank plc

      Product is designed to be held for the full term

      The objective of the Plan is to provide a full repayment of capital at the end of the five year term, plus a fixed return of 26% provided the final value of the FTSE 100 Index finishes higher at the end of the term (subject to averaging) than its value at the start of the plan. If the Index rises by more than 30%, the return will be 100% of any rise with no upper limit. Returns are not guaranteed and you may only receive a return of your original capital.

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

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    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

    • Provider/Product name Investec FTSE 100 Kick Out Deposit Plan 45

      Investec Bank plc

      Investec FTSE 100 Kick Out Deposit Plan 45

    • Description

      Potential return of 5.00% per annum

      Investment term - 6 Years

      Deposit Taker Investec Bank plc

      Product is designed to be held for the full term

      The Plan has a 6 year term, but offers the opportunity to mature early after years 2, 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 5.00% times the number of years the Plan has been active (not compounded). For example, early maturity at the end of year 3 would return 15.00%.

      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

    • Provider/Product name Defensive Supertracker Deposit Plan 2

      Morgan Stanley

      Defensive Supertracker Deposit Plan 2

    • Description

      Potential return - 2 x any rise in the FTSE 100 Index above 95% of its starting level (40% Cap)

      Investment term - 6 Years

      Deposit Taker - Lloyds Bank plc

      Product is designed to be held for the full term

      The objective of the Plan is to provide a full repayment of capital at maturity, plus 2 x any rise in the FTSE 100 Index above 95% of its value at the start of the plan, capped at a maximum 40% of your original deposit. For example, if the Index ends 2% below the return will be 6% (2 x 3%), and if the Index ends 10% above the return will be 30% (2 x 15%). Returns are not guaranteed and you may only receive a return of your original capital

      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 recieve 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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