IFA firm Chartwell says it has taken more than £3m in new money into its Protected Income Plan since the last base rate change as UK investors seek to protect their lifestyle from inflation.
The firm says with the Consumer Price Index up from 2.1% in December 2007 to 2.2% in January 2008, UK families face rising costs of petrol, food and energy bills.
It says this has led UK consumers to seek new ways to protect what they have and make their investments work harder.
“According to YouGov, 35% of the UK population have a savings account delivering less than 4.00%,” says James Davies, head of investment research at Chartwell.
“This, combined with the rising costs of fuel, food and other aspects of daily life have led UK consumers to find ways to make their money work harder.
“Chartwell has seen a massive rise in demand for income-generating investments and this is highlighted in the new money we have taken into our income-generating Protected Income Plan in just 10 days.”
The Protected Income Plan (PIP) is a six year plan which pays an annual income of 10% or a quarterly income facility (2.45%) or a roll-up option (68%).
It provides contingent capital protection, which is dependant upon the share price of five of the UK’s largest banks. The downside protection barrier is 65% below the initial strike level. Income is fixed and not dependant on the performance on the underlying stocks or the stockmarket.
The plan is open for investment from 11 February, with the minimum investment being £7,000 for ISA and £10,000 for direct investment; the strike date is 28 March 2008.
020 7034 2636
Warns on profits
Hargreave Hale seeking legal advice
Latest news and analysis
First mentioned in Cridland Report