** We are currently not accepting deposits for this product. Please check back later for availability or call us on 0845 609 0261 for more information. **
How do you calculate growth and interest?How do you calculate growth and interest?
The Index is based on the performance of the share value of the UK's top 100 quoted companies. It is expected to fluctuate during the bond term, with some growth and some falls.
In order to determine how much interest is paid at maturity, we first calculate the overall growth of the Index using a start value and an end value.
The Index start value that we use will be set at a date stated at the launch of the bond. To calculate the Index end value, we take a set number of values of the Index, spread throughout the final year of the bond (the 'Averaging Period'), and determine an average value.
Key to the Capital Protected Bond is that it pays returns based on a percentage (the 'participation rate') of any overall growth in the Index over the investment term.
All returns earned will be liable to tax at the rates applicable in the year of maturity. Interest will be paid net to taxpayers, excluding those who deposit more than £50,000. Those customers will be paid gross under the Qualifying Time Deposit rules unless they close their Bond during the "cancellation" period, however any interest from FTSE 100 growth will have to be accounted for in their annual tax return. Non-taxpayers will receive any interest gross, subject to completion of an R85 form which will be issued in their Welcome Pack.
Who is eligible to take out a Capital Protected Bond?
Capital Protected Bonds are available to UK based personal investors aged 16 years or over.
What are the investment limits?
For each Capital Protected Bond you open, you can make one single deposit of between £1,000 and £1 million. Only one deposit will be accepted per bond, but you can open as many bonds as you like up to a total combined value of £10 million.
The bond is available as a single account only - joint bonds are not available. However, your client and their partner could each have a separate bond if they wish.
When will my client receive statements?
Statements are sent out annually.
Can my client withdraw funds from their bond?
After the cancellation period, no withdrawals can be be made from the bond until it matures.
What happens if my client wants to surrender early?
No early surrender is permitted. However, if a Capital Protected Bond holder dies before maturity, the original deposit will be repaid in full. Returns may also be payable and the bond may in certain circumstances be transferred.
What happens when the bond matures?
One month before maturity we will send your client a letter advising them of their options. Shortly after maturity we will also send them a letter confirming the exact value of their funds including any returns where applicable.
When and how do I send in my clients' funds?
You can open a Capital Protected Bond by sending us a cheque or bank giro credit, or transferring funds from an existing Standard Life Bank Direct Access Savings Account or 50 Day Notice Account. We must receive the funds within 14 days of the initial application and at least 16 clear days before the Index Start Date. If we don't receive the funds within this time, we will close the bond and return the deposit or obtain further instructions.
Prior to the Index Start Date we hold the funds in a savings account where it earns interest at a fixed rate until the Index Start Date. This interest must be paid into a:
How do I know if a Capital Protected Bond is right for my client?
Before opening a Capital Protected Bond, you should think carefully about whether it's the right sort of investment for your client. You should consider the following things:
Yes, it could be right for your client if:
Are there any charges associated with the Capital Protected Bond?
No, there are no initial or ongoing charges associated with the bond.
Can my client change their mind?
After making their deposit your client will be given a 14 day cancellation period, during which time they have the right to change their mind. If they decide that the Capital Protected Bond isn't right for them or wish to reduce the amount deposited, we will return the funds.
How do I open a Capital Protected Bond?
You can open a Capital Protected Bond online or by phone.
For more information call: 0845 609 0261. Our phone lines are open Mon-Fri: 8am-6pm.
* “FTSE®” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under licence. The FTSE 100 Index is calculated solely by FTSE. FTSE does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright in the Index values and constituent list vests in FTSE.
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