Guaranteed Capital Account 24
Guaranteed Capital Account 24
What Is It?
- A Dunbar deposit account with a fixed term of five and a half years
- Growth linked to the performance of the FTSE 100 Index
- An option for the client to use their Cash ISA allowance of up to £3,600 as part of the investment and/or transfer in Cash ISAs from previous years
- Start point is the closing level of the FTSE 100 Index on 20 August 2009
- End point is the closing level of the FTSE 100 Index on 15 February 2015
- Potential return
- If the FTSE 100 Index grows by more than 80% at any point during the term of the product the client receives 25% interest at maturity
- If the averaged FTSE 100 Index grows by up to 80% the client receives interest equivalent to all that growth at maturity
- If the FTSE has remained at exactly the same level or it falls the client capital is returned
- Interest on the non-ISA element of the account could be subjected to Income Tax on the client’s personal circumstances
What's So Good About It?
- 100% capital guaranteed
- Gross interest of 25% or up to 80%
- 100% allocation. No initial or annual charges.
- Available to individuals, companies, charities, SIPP, SSAS
- Dunbar Bank are covered by the Financial Services Compensation Scheme
- Potentially tax free with cash ISA and cash ISA transfers
- The strength of the Zurich name
Key Dates For Applications
- All cash ISA transfers applications must be received by 20 July
- All other applications must be received by 17 August 2009
How Much Can Clients Save?
- Minimum £2,500 – Maximum £1 million
- Up to £3600 in a Cash ISA. All or part of previous cash ISA's
Anything Else To Know?
- This should be seen as a medium-term investment, the client cannot withdraw money during the term of the account except for ISA part. Clients should only consider this in an emergency as there will be a fee for doing so, which could be substantial. Therefore they will get back less than they invested, and they won’t receive interest on any money withdrawn.
- As the account is not invested directly in the stock market the client will not receive any dividends.
- Interest on ISA element tax-free under current regulations. Client can advise tax status at maturity. Otherwise as default taxed at 20% and the client is liable for any excess to HMRC.
- If the FTSE 100 Index does not grow then the client will receive the full return of their capital (minus any early withdrawals made) this would be less than the interest they may have earned in a more traditional bank or building society account.
- On death, the original investment held in the non-ISA element, less any withdrawals, will either be returned or the account can continue. Any money held in the ISA element will either be returned, or will be transferred to the non-ISA element of the Guaranteed Capital Account 24.
