Answer a question

Do you want to follow this topic? You need to be signed in for this feature
Do you want to save this article to read later? You need to be signed in for this feature

Protected Capital Growth Accounts?

I've just been talking to my current ISA provider who was giving me information on a Protected Capital Account They say I can use it like an ISA for tax free savings the term is 6yrs and you have to invest a minimum of £3k returns 18% protected with the chance of it growing to 48% which I know is very unlikely due to it being linked to the FTSE100. Given that the chance of the FTSE being +6 half the time would this work out as a better investment than a fixed rate ISA - I've seen advice from previous years saying it's not worth it but with ISA rates so low is it now?


Do you want to answer this question? You need to be signed in for this feature


Hi, A return of 18% over six years far exceeds the top-paying fixed-rate Cash ISA at present. But I'd read the small print carefully - a quick look around various Protected Capital Accounts shows an average rate of around 6% if the FTSE doesn't rise. Is it 18% over the term or 18% divided up over the period? If it's the latter, and the FTSE doesn't incease sufficiently, you're looking at a real rate of return of something in the region of 3%, well below the top fixed-rate Cash ISAs. I'd ask some questions before committing. Best wishes Simon