New-look PEP

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ew-look PEP

Scottish Mutual has launched the first Guaranteed PEP which will offer investors 7.5 per cent on a £6,000 investment held for five and a half years. The PEP will be investing in a new investment trust holding around 70 per cent in high yielding equities and 30 per cent in fixed interest.

The return is equal to 10 per cent gross for a standard rate taxpayer and 12.5 per cent for higher rate taxpayers. Income is available monthly or yearly but rolled-up income could raise the return to 151 per cent over the full life of the PEP. There are no explicit charges and Scottish Amicable makes its money from out-performing its guarantee.