The six-year FTSE Income Deposit Plan 5 offers potential gross income of 7.5% per year or 1.4% per quarter, while the FTSE 5 Quarterly Kick-Out Plan 5 offers growth of 6% per quarter.
The Income Deposit Plan will pay the stated income if the FTSE 100 closes within the range of 4250 and 7250 on each business day during an observation period.
Observation periods will be at the end of the quarter or the end of each year, depending on which income option the investor chooses.
Minimum investment in the plan is £10,000 for non-ISA investments and £5,340 for those investing through a cash ISA. Investors can choose to invest in one or both of the quarterly or annual income options.
The Closing date for the Income Deposit Plan is 20 January for ISA transfer applications, 27 January for direct applications with cheque, or 1 February for direct applications with bank transfers.
Maturity date for the plan is 16 February 2018.
Meanwhile, returns from the Quarterly Kick-Out Plan are based upon a basket of five FTSE 100 shares: BHP Billiton, GlaxoSmithKline, HSBC, Royal Dutch Shell Class A Shares and Tesco.
The plan will mature and pay 6% gross at the first quarterly measurement date so long as each of the five shares is at or above 95% of its opening level.
Early maturity will be triggered if on any quarterly measurement date the closing share prices of all five shares are at least 95% of their respective opening levels.
If this is the case the plan will make a growth payment of 6% of the initial investment for each quarter the plan has been in force.
Investors’ capital is at risk if the plan does not kick-out early and the final level of the worst performing share is more than 50% below its opening level.
Minimum investment in this plan is £10,000, the final closing date is 29 February, and opening levels for the plan will be close of business prices on the five respective shares on 2 March.
Its final maturity date is 16 March 2017.
