FTSE Income Plan

Features
Target Market
Key Facts
Key Dates
Literature

7% per annum for 6 years with capital protection

This plan is closed to new applications.

Capital return is linked to the performance of the FTSE 100™

The plan pays an income of 7% per annum (6 payments) or 0.574% per month (72 payments) which is not dependent on the performance of the Index

100% capital return provided the Index doesn't fall by more than 50% during the term of the investment

The counterparty is Barclays Bank plc, which had a Standard & Poor's credit rating of 'AA-' at 29 May 2009

Available until 26 June 2009

Target Market

This investment could be suitable as part of an investment portfolio for investors who

want a fixed level of income
understand and are used to equity investments, and
are able to invest for a period of 6 years, and
are prepared to accept a degree of risk to their capital in return for a higher income than would be available via a deposit based investment

Key Facts

Investment Term

6 years and 15 days.

Availability

As direct investments, stocks and shares ISAs, ISA transfers (including former PEPs), and for pension funds, trustees and companies. Not available to resident of the United States.

Index

FTSE 100™

Investment Return

The plan offers the choice of income payable at the rate of 7% per annum (6 payments) or 0.574% per month (72 payments). The payment of the income is not dependent on the performance of the Index.

Capital Return

A full capital return will be payable in addition to the income paid, provided the Index does not fall by more than 50% at the close of business on any day during the investment term.

If the barrier of 50% is breached then capital will be at risk if, at maturity, the Index does not recover back to the Opening Level. In this event there will be a capital loss at the rate of 1% for each 1% the Index finishes below its Opening Level.

Counterparty Risk

The securities will be issued by Barclays Bank plc, a major financial institution with a rating of ‘AA-‘ by Standard and Poor’s. If the financial institution were to fail to meet the repayments due, you could lose some or all of your investment. Counterparty risk is common to all similar investments

Tax

Income is derived from an offshore dividend. Under current tax legislation income from ISA investments will be free from any tax, as will income in respect of pension arrangements.

For direct investments income is paid net of the offshore dividend tax credit. If you are a basic rate taxpayer or you do not pay tax, you should have no further liability for tax. Higher rate taxpayers will have a liability of 32.5% - the tax credit reduces the effective rate of tax to 25%. For those earning over £150,000 in 2010/11 the new top rate of 42.5% will apply - the tax credit will reduce this to an effective rate of 36.11%.

Interest

Interest will be credited on subscriptions received and held in our client account up to the investment date, subject to a de minimis limit of £10.

Charges

There are no initial or ongoing charges. Charges are included in the pricing of the investment.

Early encashments and transfers during the investment term will be subject to an administration charge.

Commission

Securities

Investment subscriptions will be used to purchase preference shares in a Guernsey Protected Cell Company, which in turn will purchase notes issued by Barclays Bank plc which are designed to have the characteristics required to achieve the investment objectives of the plan.

Key Dates

Offer period

Closed

ISA transfers

Applications must be received by 19/06/2009

Start date

30/06/2009

Opening level