Norwich Union is looking to launch a protected Isa product later this year, offering fixed monthly i...
Norwich Union is looking to launch a protected Isa product later this year, offering fixed monthly income and a level of capital protection.
Although specifications for the Isa are not yet finalised, it will offer in the region of 6.25% gross income per year paid monthly, with a roll-up option of 35% at the end of the five-year term.
As for capital security, 100% of the original investment will be returned at maturity unless the FTSE 100 has fallen below 60% of its starting level at some point during the term and is lower than its starting point after five years.
If both of these events occur, the capital return will fall by 1% for each 1% the index is below its starting level on reaching the maturity date.
Norwich product development manager John Osman said these terms were calculated earlier this year but are subject to change to take account of market movements.
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