Structured Deposits

Structured deposits, unlike pure investment products, guarantee that, regardless of how the stock market performs, your initial investment will be returned in full at maturity.

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What is a Structured Deposit?

  • Structured deposits offer exposure to stock market growth but with a guarantee that your initial investment will be returned at maturity.

  • They provide an opportunity for better returns than through a traditional savings account, but no guarantee of any return being achieved.

  • They should not be confused with a structured investment, which do not promise the return of capital.

How do they work?

  • You deposit a lump sum for a fixed period, once the period is over (the plan hits maturity) you will receive your initial investment back plus potential interest.
  • The interest depends on the plan terms and features, which one of our Independent Financial Advisers would discuss with you in great detail.

An Example

Name: Structured Deposit Plan A
Term: 5 Years
Return: 2 x any rise in the FTSE 100 Index (double the rise)

Scenario 1

If you invested £10,000 into the above plan today and in 5 years time and the FTSE 100 had risen 25% you would receive your £10,000 back plus £5,000 (50% of your initial investment) in interest. In total, you would receive £15,000.

Scenario 2

If you invested £10,000 into the above plan today and in 5 years time and the FTSE 100 had risen 10% you would receive your £10,000 back plus £2,000 (20% of your initial investment) in interest. In total, you would receive £12,000.

Scenario 3

If you invested £10,000 into the above plan today and in 5 years time and the FTSE 100 had fallen 10% you would receive your £10,000 but zero interest. In total, you would receive £10,000.

Due to the effects of inflation, your capital could be worth less in 5 years than it is today. Inflation is current around 2% year, using the above example £10,000 today could be worth £9,000 in 5 years if that money is not invested or earns no interest. This is the main risk associated with Structured Deposits; however, with high street banks offering such poor interest rates, they can be attractive to the right investor.

Availability of Structured Deposit plans change regularly; please contact us to find out what Structured Deposits are available and to discuss your suitability with one of our Independent Financial Advisers.

Who should invest in Structured Deposits?

Investors who:

  • Can invest for the medium to long term (3-10 years).
  • Want full return of their initial capital.
  • Have a low to medium appetite for risk.
  • Who seek potentially higher returns/yields as compared to traditional fixed deposits offered by high street banks.
  • Want protection from the FSCS (Financial Services Compensation Scheme).