Key Data is offering a new Tessa-only Isa fund with a lock-in which guarantees investors at least a 5 per cent annual return.
The fund tracks the FTSE 100 and guarantees if the index grows by 25 per cent at any time during the five-year investment period, that growth will be locked in.
If the index fails to hit the 25 per cent mark, the inves-tor will receive the equivalent of any growth in the index. Investors will also get half of any further growth above the 25 per cent mark.
The initial capital is guaranteed as long as investors remain in the fund for the five-year duration.
This launch is the first of three tranches, running through to mid-October.
Despite its name, the FTSE lock-in Toisa, which is backed by Newcastle Building Society, is also available as a mini cash Isa. Minimum investment is £3,000 for transfers from Tessas and mini cash Isas.
By combining the maximum £9,000 Tessa allowance and £3,000 mini Isa allowance, up to invest up to £12,000 in the fund. The offer closes on July 22. Commission is 2 per cent.
Retail sales director Mark Owen says: “The product is designed to be safe and secure and to deliver a sensible return to the investor through its lock-in function. If this is triggered, it means investors will get at least 5 per cent a year return.”