The FTSE Income Deposit Plan 3 offers investors the choice of either a quarterly income of 1.4% or an annual payment of 7%, depending on the performance of the FTSE 100.
An income payment will be made if the index is less than or equal to 7,250 and greater than 4,250 at the close of each business day during the preceding quarter. The plan does offer capital protection and, subject to counterparty risk – the counterparty is the Royal Bank of Scotland – the initial investment amount will be returned.
The closing date for the plan is 9 November, 2011, the start date of the plan is 11 November and it matures on 24 November, 2017.
Alternatively, investors can take advantage of Meteor’s FTSE 5 Quarterly Kick-Out Plan 4 that depends on the performance of BHP Billiton, GlaxSmithKline , HSBC, Shell and Tesco.
The plan will pay 5.5% gross at the first quarterly measurement date as long as all five are at or above 95% of their opening level. If payment is not made at the end of the first quarter, 11% will be paid out at the second quarterly payment date assuming the relevant criteria are met.
Capital is at risk at maturity if the worst performing share is more than 50% below its opening level.
The opening level will be at the close of play on 9 December, 2011, and the first measurement date is 9 March, 2012. The final levels will be as at 9 December, 2016, with maturity on 23 December.
