NDF Administration is offering an income and growth stockmarket-linked investment bond.
The extra income & growth plan 6 will provide a fixed income of 10.25 per cent net a year over three years or 31 per cent net capital growth over the term.
Capital will be returned in full at the end of the three years, provided that the Nikkei 225 stockmarket index does not fall by more than 20 per cent below the initial investment level without recovering in full before then end of the term.
Minimum investment is £10,000 or £7,000 within an Isa and maximum is £1m. There are no initial or annual charges. Initial commission is up to 3 per cent.
Managing director Antony Stack says: “The plan will provide investors with a reliable stream of income that is not easy to secure from alternative vehicles. The terms of the investment were set before Christmas.
“Following two rate cuts in the US and a base rate cut in the UK, we would not be able to secure these terms in the market today.”