Gilliat issues 7% Income Builder

Gilliat Financial Solutions has launched an income product which offers up to 7% per annum.

Linked to the FTSE 100, the Gilliat Income Builder February 2010 accrues on a daily basis providing the index remains above 60% of its starting level.

Income is capped at a maximum at 7% per year. However, this income will reduce in proportion to the number of times the index falls below the barrier.

The maximum income for the six year deal is 42%.

On maturity, capital will be returned in full as long as the index has not fallen by more than 40%, otherwise capital is at risk. Royal Bank of Scotland is the counterparty.

The plan is open for investment until 30 March 2010, set at a minimum of £3,000. It is available for investment through an ISA, SIPP and SSAS, with commission at 3%.