Jubilee offers step-down and deposit plans for ISA year-end

A new ‘step-down' early-redemption plan has been launched by Jubilee Financial Products (JLP). The six-year plan was released at the same time as a Lloyds TSB Growth Deposit Account and comes just in time for the UK individual savings account (ISA) year-end.

The early redemption plan pays up to 10% per annum and offers a front-loaded coupon. "We have done this because in 60–75% of cases kick-outs occur in the first and second years. This way investors get a higher return in the early years," explains Jakob Bronebakk, associate partner at JLP. He adds he product is issued by UBS, which offers "credit we are comfortable with and funding rates that allow us to offer good terms; we trust their ability to price derivatives properly".

Alternatively, the deposit plan is aimed at clients with money in offshore bonds. The investment in the Lloyds TSB deposit account linked to the FTSE 100 index can be held in most offshore bonds. Full capital protection is given if held to the end of the six-year term and 120% return on the growth of the index is offered (up to 60%). Bronebakk says "it is really to tap in to the offshore bond market, where there isn't really that much available at the moment".

"Lloyds TSB is one of the most respected names in the UK so we believe an investment that can be held in most offshore bonds is likely to be extremely popular," says Ian Millward, JFP's head of distribution. "It is targeted at investors looking to take part in moderate to strong FTSE growth over the next six years, without risking their capital in the stock market".

Held on bare trust, the account with Lloyds TSB is covered by the FSCS compensation scheme.


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