Looking for better returns on your cash deposits? A kickout plan might be for you!
If you are concerned about low interest rates and can tie up some of your capital, a ‘Kickout Plan’ might be for you.
Kickout Plans aim to automatically mature and deliver a return on the first anniversary where the FTSE 100 matches or is higher than its starting point. Currently rates are around 7- 8% and your capital is secure. The maximum term is usually 5 years, at which time if you have not been ‘kicked out’ you usually get a return of your capital plus any growth in the FTSE 100.
Capital protection and the payment of growth are dependent on the ongoing solvency of the investment company.
Whilst not a replacement for a bank or building society account for instant access cash, it is an interesting low-risk alternative for money that can be tied up for up to 5 years.
If you would like a chat about Kickout Plans, please contact our independent financial adviser, David Hopkinson.