Arc launches latest Stepped Kick Out offering 11% return

Arc Capital & Income has launched the sixth issue of its Stepped Kick Out plan, linked to the FTSE 100 index. The six-year, three-week plan offers 11% at the end of the first year and matures if the index is at or above its opening level on the first trigger date. Otherwise, the plan continues into year two and pays 22% if the index is at or above its starting level. If this condition is not satisfied, the plan remains open until the index is at or above its starting level on the trigger dates, paying 33%, 44%, 55% and 66% in the respective years.

The plan returns initial capital, adjusted for Retail Price Index (RPI) inflation over the six-year term, if early maturity is not triggered during the life of the plan. If the index falls more than 50% during the term and the final level is below the initial level, then capital loss is 1:1.

“The inflation link at the end of the plan means that if it has not kicked out and the 50% barrier has not been breached, then the maturity value returned is increased with the movement of the RPI,” says