The FTSE Income Deposit Plan 5 offers investors a choice of potential income of 1.4% per quarter or 7.5% per annum.
The potential income is linked to the performance of the FTSE 100 and will be made at the end of the chosen observation period (quarterly or annually) if the index closes between 4,250 and 7,250 on every business day during that period.
If the index does not close within those boundaries, no income will be paid for that period.
With this product, investors’ capital is returned in full at the end of the six-year investment period, subject to counterparty risk, and is not dependent on the performance of the FTSE 100.
Also added to the range are the FTSE 5 Quarterly Defensive Plan 4 and FTSE 5 Quarterly Kick-Out Plan 5, which are designed for investors looking to achieve value from blue chip shares.
They offer quarterly coupons of 4.25% and 6% respectively, based on the performance of the share prices of BHP Billiton, GlaxoSmithKline, HSBC, Shell and Tesco.
The Quarterly Defensive Plan 4 is a five-year plan which pays 4.25% each quarter if the performance of all five shares named above is at or above 85% of their opening levels. Investors’ capital is at risk if the final level of the lowest performing share is more than 50% lower than its opening level.
The Kick-Out Plan 5 also has a five-year term, with the potential to kick-out at any quarterly measurement date. It will return 6% for each quarter if all five companies are at or above 955 of their opening levels.
As with the Quarterly Defensive Plan 4, investors’ capital is at risk if the final level of one of the companies’ shares is 50% lower than its opening level.
The counterparty for all the plans is the Royal Bank of Scotland.
