The Inflation Deposit Plan (Issue One) from Jubilee Financial products is a fixed term deposit designed to provide a return which will allow your savings to keep pace with inflation, without putting them at capital risk, some key features of the plan:
Buy through Investment Sense and you will receive a 2% bonus, added to your investment at outset
- Capital protected and with deposits taken by a member of the UK Financial Services Compensation Scheme (FSCS)
- Maturity date 21st July 2017
- Plan provides a return equal to the rise in the Retail Prices Index (RPI)
- Available for Cash ISA / Cash ISA transfers
- Also available directly or via a SIPP / SSAS
- Minimum investment of £5,340
Who is the plan provider?
The Inflation Deposit Plan is distributed by Jubilee Financial Products LLP who are authorised and regulated by the Financial Services Authority with registration number 486204.
The deposit taker is The Royal Bank of Scotland plc. The current credit rating of Royal Bank of Scotland plc is A+ (S&P), Aa3 (Moody’s), and AA- (Fitch).
How can I invest in the plan?
The minimum investment is £5,340; the maximum which an individual can invest is £3 million.
You can invest in the plan in the following ways:
- Cash ISA for the 2011/12 tax year
- Cash ISA transfers
- Direct investments
- SIPP and SSAS investments
How is the return calculated?
The performance of the Index is measured by comparing the Final Index Level with the Initial Index Level over the term of the plan and an interest payment equivalent to any rise will be paid. If RPI has fallen over the deposit term (i.e. deflation) zero interest will be paid.
The following table is intended to show a number of possible outcomes of investing in the Inflation Deposit Plan, depending on the movement of the Index during the term. The scenarios are hypothetical, do not represent predictions of future outcomes, and are not exhaustive.
|Performance of RPI over the deposit term||Initial deposit amount||Interest||Maturity value|
How does the 2% bonus work?
Investment Sense receive a 3% commission from Jubilee Financial Products LLP, we use 2% of this to provide the bonus to our clients.
The remaining 1% goes to meet our costs, therefore on an investment of £10,000 Investment Sense would receive £100.
- The Inflation Deposit Plan is a fixed term deposit and is designed to be held until maturity. You should not invest if you do not think you will be able to invest for the full term. Early redemption of the Inflation Deposit Plan may result in you getting back substantially less than you originally invested
- The Inflation Deposit Plan pays no Interest during the deposit term. Instead, it provides an interest payment linked to the movement in the UK Retail Prices Index over the deposit term. This interest payment is paid at the end of the term
- If you transfer an existing ISA your ISA Manager may charge you an exit fee, and it will take some time for the funds to be transferred. You will not receive interest on your money from the time you transfer out of an existing ISA until the deposit start date
- Tax rates and the basis of taxation are subject to change, and the value of tax reliefs depends on your personal circumstances. Specifically, the favourable tax treatment of ISAs may change in the future
- During the deposit term, the capital is held at The Royal Bank of Scotland plc in an account which is administered by the Administrator, Bank of New York Mellon, and registered in the name of a Nominee. Although the deposits are protected from insolvency or default of the Administrator and Account Manager, in the event that the Administrator or Account Manager suffers fraud or other criminal misconduct, there could be a delay in returning your capital
How is the plan taxed?
Any Interest paid at maturity is, under existing tax legislation, likely to be classed as income and subject to income tax. Interest is paid gross and investors are therefore responsible for declaration and payment of tax.
If you choose the direct investment option, Interest will normally be subject to income tax in the year the Deposit Term ends. You should consult your financial or tax adviser for details of your individual tax position.
If you are investing via a SIPP or a SSAS the pension will, under current legislation, receive the interest gross with no liability for tax.
If you invest via Cash ISA or Cash ISA transfer, you will not have to pay tax on the income from your investment.
It is important to consider that tax and ISA rules could change in the future and that the tax advantages of investing through an ISA may not be maintained.
All information on taxation in this booklet is based on our understanding of UK tax legislation at the time of writing.
Is the Inflation Deposit Plan right for me?
Yes, this plan may be suitable for me, because:
- I am comfortable with an investment linked to the performance of the UK Retail Prices Index and understand returns are not certain
- I would like the capital value of my savings to be protected at maturity
- I can afford to leave my money invested for the full term
- I understand that encashment before maturity will not reflect the performance of the index to that point
- I do not require a regular income from my savings
- I would like interest linked to the movement in the Retail Prices Index (RPI)
- I understand any interest is taxed as income
No, this investment probably doesn’t suit me, because:
- I want a guaranteed rate of return
- I am not looking for a savings with interest linked to the performance of the UK Retail Prices Index.
- I require a regular income from my savings
- I may require access to my savings before the plan matures
- I do not have other savings or investments, in particular easily accessible money to cover emergencies
- I do not have £5,340 to Deposit
- I do not feel comfortable that my savings will ultimately depend on the security of the deposit taker
The Financial Services Compensation Scheme (FSCS)
As a Deposit with a UK banking institution, your Inflation Deposit may be covered by the Financial Services Compensation Scheme (FSCS), which can pay compensation to Depositors if a bank is unable to meet its financial obligations. Most Depositors, including most individuals and small businesses, are covered by the scheme, but you should check the eligibility criteria carefully.
Investors may be eligible for compensation by the FSCS. The level of cover offered to eligible claimants by the FSCS is currently limited to £85,000 per person across all accounts they hold with The Royal Bank of Scotland plc and other banks within the authorised group. This is subject to change at any time. Investors with more than £85,000 with The Royal Bank of Scotland plc will only receive compensation up to a maximum of £85,000 and the balance will not be covered by the FSCS.
Details of eligibility are available from the FSCS website, www.fscs.org.uk, or by calling the Financial Services Compensation Scheme on 0800 678 1100.
Please note that these criteria may change in the future, and are not guaranteed to remain the same for the duration of your Deposit.
You should note that the £85,000 limit per Depositor applies to all accounts with a banking institution and is not applied per account. Deposits with The Royal Bank of Scotland plc, Direct Line, the One Account, Child & Co, Drummonds and Holts are all covered by a single FSA authorisation. This means that the total deposits with these firms will count towards the one compensation limit. Should you have any questions about this, you should contact your professional adviser.
|Application deadline||23rd September 2011|
|ISA transfer deadline||2nd September 2011|
|Deposit start date||7th October 2011|
|Deposit end date||7th July 2017|
|Deposit term||7th October 2011 – 7th July 2017|
|Maturity date||21st July 2017|
|Initial index level||Index for June 2011|
|Final index level||Index for March 2017|
|Deposit taker||Royal Bank of Scotland plc|
|Retail Prices Index||
The UK Retail prices index, calculated the Office for National Statistics and published monthly with a 1 month lag
|Index return||Is calculated as the Final Index Level minus the Initial Index Level then divided by the Initial Index Level, subject to a minimum of zero|
|Interest payment||Index return|
The information contained here, together and forms available for download does not represent personalised advice and is not confirmation that the Jubilee Inflation Deposit Plan (Issue One) matches your financial requirements.
If you should have any doubts about whether this product meets your own needs you should seek independent financial advice from us so that your individual circumstances can be considered.
How to apply
If you would like to apply for the Jubilee inflation Deposit Plan and are sure it is right for you please download the appropriate application form from the following and return to:
Investment Sense, Lace Market House, 54 – 56 High Pavement, Lace Market, Nottingham, NG1 1HW
All cheques should be made payable to Jubilee Financial Products LLP Client Monies.