Keydata Investment Services has launched a five-year income plan that provides investors with upsid...
Keydata Investment Services has launched a five-year income plan that provides investors with upside returns and downside protection.
The Dublin listed-listed Extra Income Plan allows investors to choose either 8% or 6.25% annual income over five years, or a choice of 44% or 34% growth payable at the end of the term.
Investors will receive their capital back in full providing the FTSE 100 index does not fall by more than 40% over the term and fails to recover to its starting level.
If this scenario does occur, for those who opt for the 8% income option, capital will be eroded by 2% for every 1% fall in the index. For those who take the 6.25% option, capital will be eroded by 1% for every 1% fall.
The plan is available for Isa and Pep transfers.
The offer for the plan opened at the end of January and closes on 7 March, with the closing date for Pep and Isa transfers set at 24 February.
With the plan being Dublin-listed, there is the added advantage that instead of paying ordinary income, investors receive dividend payments from a share. At the basic rate, this is taxed at 10% and at the higher rate 32.5%, compared to the 20% and 40% respectively an investor pays if they receive normal income.
For more information, contact 020 7710 6906.
HL and Liberty SIPP slowest
Lifetime and annual allowances
'IFAs bore the brunt'
'Recovery or boom'