Potential accrued interest of 1.5% per quarter or 7.6% per annum
This plan is closed to new applications.
- The Plan offers the option of either a quarterly interest accrual rate of 1.5% or an annual interest accrual rate of 7.6%, dependent on the performance of the FTSE 100 Index (‘the Index’).
- Interest is not guaranteed but will accrue at the end of each Observation Period if the Index is greater than or equal to 4,500 and less than or equal to 7,250 at the close of each business day, during that Observation Period.
- If the level of the Index closes below 4,500 or above 7,250 on any business day during an Observation Period, no interest will accrue for that particular period.
- Interest accured will be paid only at maturity
- 100% capital return regardless of the performance of the Index, subject to counterparty risk.
- The counterparty is The Royal Bank of Scotland plc ('RBS'), who has a Standard & Poor's credit rating of 'A' as at 14th March 2012.
- Direct investments and cash ISAs invested in the Plan are placed on deposit with RBS, and it is our understanding that if RBS were unable to pay the amounts due, an investor may have recourse to the Financial Services Compensation Scheme ('FSCS').
- Available until 25th April 2012.
This investment could be suitable as part of an investment portfolio for investors who:
- understand that returns are based on the performance of an Index;
- are able to invest for a period of six years; and
- are looking for a capital protected investment but with a higher potential income payment than would be available via a standard deposit based account.
- Any interest you receive will depend on the performance of the Index and it is possible that you might not receive any interest at all. Should the Index level close below 4,500 or above 7,250 on any business day during an Observation Period no interest will accrue for that period.
- This Plan is designed to accrue either quarterly or annual interest during the term of the Plan and is not appropriate if you need an income from your capital.
- Interest may not accrue in every Observation Period of the six year term and it is possible that the Plan may not provide any interest at all.
- This Plan should only be considered as part of your investment portfolio. You should have other savings that you can access immediately and without penalty to meet any emergency cash needs over the investment term.
- If you tell us that you want to cancel your investment after we have arranged the Deposit you will only get back the value of the Deposit when we sell it, which is likely to be less than your original investment.
- If your circumstances change and you need to withdraw your investment early we will have to withdraw the Deposit and you may not receive back all of the amount you originally invested. You will also have to pay an administration charge.
- In normal market conditions, it is expected that RBS will provide pricing for investors who need access to their capital before the Maturity Date. However, there is no guarantee that you will be able to redeem your investment before maturity. Whilst RBS intends to provide a secondary market for this investment, there is no guarantee this intended liquidity will be available. If the Deposit Taker is unable to quote regular indicative prices it would not be possible for Meteor to provide investors with an accurate current value of their investment at such times. In such an event interim prices may not be updated regularly and there may be a relatively large difference between the last available indicative price quoted and the price actually paid in the event of early redemption.
- You need to take account of the fact that inflation will reduce the value of what you receive back.
- The values of any tax reliefs will depend on your individual circumstances. You should note that the levels and bases of taxation could change in the future. Such changes may be applied retrospectively.
- You should be aware that RBS could fail to make the payments due to us. This risk is known as Counterparty Risk.
- When you invest in the Plan, we will use your money to acquire, on your behalf, a Deposit which is designed to have the characteristics required to achieve the investment objectives of the Plan. The Deposit will be issued by RBS, which has a current credit rating of ‘A’ by Standard and Poor's as at the 13th March 2012. As with any similar investment the security of your Plan is ultimately dependent on RBS making to us the payments due from the Deposit to allow us to pay you any interest on the Deposit and any repayment of your investment capital. If RBS were to fail to meet the repayments due, you would lose some, or all of your original capital, as well as, any interest to which you otherwise might have been entitled.
- The actual and perceived ability of RBS to meet its obligations may affect the market value of the investment over the term. If RBS fails to meet its obligations, you may get back less than is due to you or nothing at all. In addition, the terms of the investment may permit the Counterparty as Deposit Taker to delay, reduce or withhold payments. These provisions are not intended to circumvent what is legally due to investors but are intended to cover unforeseen events which affect your return, for example, a suspension or delay in receiving prices.
Risks of transferring an ISA
- Your existing ISA must be transferred in cash, which means your existing ISA Manager will sell your investment holdings.
- You could lose some interest if you transfer a cash ISA and decide not to wait for the expiry of any notice period. Your existing ISA Manager may also charge you an exit or transfer fee.
- We will not normally accept ISA transfer applications after 13th April 2012, to allow time for us to receive the proceeds from your existing ISA Manager. However, if they do not send us the funds you have requested before the Start Date we will not be able to purchase the Deposit for this Plan on your behalf.
Six years and two weeks.
As a direct investment, cash ISA for 2011/12 and 2012/13 and cash ISA transfer, and for pension funds, trustees, companies and partnerships.
FTSE 100 Index.
Potential 1.5% per quarter or 7.6% per annum dependent on the performance of the Index.
A full capital return will be payable regardless of the performance of the Index, subject to counterparty risk.
The Deposit Taker will be The Royal Bank of Scotland plc ('RBS'), a major financial institution with a rating of ‘A‘ by Standard and Poor’s as at 14th March 2012. The credit rating is subject to change during the offer period and the term of the investment. If the financial institution were to fail to meet the repayments due to you, you could lose some or all of your investment. Counterparty risk is common to all similar investments
It is our understanding that, under current legislation, investments via a cash ISA will be tax free. When you invest individually, jointly or via a trust it is our understanding that the returns will, under current legislation, be subject to Income Tax. The rate at which income is taxed depends on your individual circumstances and your other taxable income.
Any interest paid on a Deposit held in a SIPP, SSAS or other pension arrangement will usually be free of tax.
Any interest earned before placing your money in the Deposit and after the Deposit has matured will also be subject to Income Tax and this will be deducted from the interest prior to being deposited in the Deposit or payment of the Plan proceeds.
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.
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.
The fixed term Deposit will be structured to provide the returns shown in the plan brochure, and purchased for each investor.
This plan is closed to new applications.
Applications must be received by 13/04/2012
Please note that this plan allows investors to use their ISA allowance for both the 2011/12 and 2012/13 tax years. The subscription deadlines for each are
2011/2012 ISA applications with bank transfers or cheques: 5th April 2012
2012/2013 ISA applications with cheques: 20th April 2012
2012/2013 ISA applications with bank transfers: 25th April 2012
QUARTERLY OBSERVATION PERIOD END DATES: 26th Jul 2012, 26 Oct 2012, 25 Jan 2013, 26 Apr 2013, 26 Jul 2013, 25 Oct 2013, 24 Jan 2014, 25 Apr 2014, 25 Jul 2014, 24 Oct 2014, 26 Jan 2015, 24 Apr 2015, 24 Jul 2015, 26 Oct 2015, 26 Jan 2016, 26 Apr 2016, 26 Jul 2016, 26 Oct 2016, 26 Jan 2017, 26 Apr 2017, 26 Jul 2017, 26 Oct 2017, 26 Jan 2018 and 27 Apr 2018.
ANNUAL OBSERVATION PERIOD END DATES: 26 Apr 2013, 25 Apr 2014, 24 Apr 2015, 26 Apr 2016, 26 Apr 2017 and 27 Apr 2018.