The short answer

An autocallable, or kick-out plan, is a structured note that ends early — "kicks out" — on any observation date when the underlying index is at or above a set level, paying back your capital plus a fixed return for each year it has run. Returns snowball: a plan paying 8% a year pays 8% after one year, 16% after two, and so on. If it hasn't kicked out by the end, your capital is returned in full as long as the index is above a protection barrier, commonly 60%. Popular variations make a payout even more likely: step-down plans lower the kick-out level each year, defensive plans kick out below the starting level, and income and phoenix versions pay regular coupons. They're issued by major banks and are ideal for flat to rising markets. Lawrence arranges kick-out plans for clients — talk to him about what's available now.

Notes available now

Examples of the notes Lawrence has arranged for clients over the last six months. New notes launch every month, and these are typical of the terms on offer right now.

Examples of notes arranged through Lawrence in the six months to October 2026. Terms are set when each note launches and change with markets; coupons are conditional on the index levels set out in each note. Capital is at risk if the worst-performing index has fallen 30% or more at maturity, and all payments depend on the issuing bank. Ask Lawrence for the notes available this month.

Today's terms: better than ever

The track record of the past decade is impressive — but the notes on offer today are even more attractive. Over the last six months, the notes Lawrence has arranged for clients have typically offered:

• 13.56% a year on a five-year US dollar autocall — a conditional snowball coupon of 3.39% for every quarter it runs.
• 13.12% a year on the sterling version — 3.28% a quarter.
• 9.72% a year on a five-year US dollar triple-index Phoenix — 2.43% paid every quarter, with a memory feature that catches up any missed coupon.
• 9.85% a year on a four-year sterling memory Phoenix, paid quarterly.

All four are linked to a basket of three of the world's leading stock markets — the S&P 500, the Euro Stoxx 50 and the Nikkei 225 — and all return your capital in full at maturity unless the worst-performing index has fallen by 30% or more. Linking to three major markets, rather than one, is what allows banks to offer coupons this strong.

To put that in money terms: on US$100,000, the dollar autocall builds up US$3,390 for every quarter it runs — US$113,560 back if it kicks out after a year, US$127,120 after two years, and up to US$167,800 if it runs the full five years and meets its conditions. The dollar Phoenix pays US$2,430 every quarter the conditions are met — US$9,720 a year in income. Compare that with the 7.44% a year averaged by kick-out plans over the past decade, and it's clear why investors are paying attention.

New notes are launched every month, and terms move with markets. Lawrence can show you exactly what's available right now.

How an autocallable works, step by step

1. You invest — for example £10,000, in pounds, dollars or euros.
2. The starting level is set — the closing level of the index, such as the FTSE 100, on the start date.
3. On each observation date — usually each anniversary, sometimes each quarter — the index is checked against the kick-out level.
4. If it's at or above the level, the plan kicks out: you receive your capital plus the fixed return for every year so far.
5. If it's below, nothing is lost — the plan simply carries on, and the return keeps building.
6. At the end of the term, if it hasn't kicked out, your capital comes back in full as long as the index is above the protection barrier.

That's it. There's no need to time the market, pick shares or watch prices every day. The formula does the work, and you know from day one exactly what each outcome will pay.

The snowball: why returns build every year

One of the most attractive features of a classic kick-out plan is the "snowball". If the plan doesn't kick out in a given year, you don't lose that year's return — it's added to the total, and paid when the plan eventually kicks out.

A published BNP Paribas plan linked to the FTSE 100 and S&P 500 shows how powerful this can be. Paying 10.15% a year, it would have returned:

• Year 1 — 110.15% of your capital.
• Year 2 — 120.30%.
• Year 3 — 130.45%.
• Year 4 — 140.60%.
• Year 5 — 150.75%.

So even if markets took a few years to get back to their starting levels, investors were rewarded for their patience with every year's return. On £10,000, a year-five kick-out would have paid back £15,075. And if the plan had run its full course without kicking out, capital was still returned in full unless either index had fallen below 60% of its start.

The autocallable family

The main versions of the kick-out plan, side by side.

Every plan sets out its own terms in its key information document. All depend on the issuing bank.

Step-down plans: making a payout more likely

Step-down plans are one of the most popular modern designs. The level the index needs to reach to trigger a kick-out falls over time, so the longer the plan runs, the easier it becomes to pay out.

A real example: Investec's FTSE 100 Step Down Kick-Out Plan 42, with BNP Paribas as counterparty, paid 5.43% a year and could kick out at the end of years two to six at these levels:

• Year 2 — FTSE 100 at or above 100% of its starting level.
• Year 3 — 95%.
• Year 4 — 90%.
• Year 5 — 85%.
• Year 6 — 80%.

So by the final year, the FTSE 100 could be 20% lower than when the plan started and investors would still receive their capital plus six years of returns — £13,258 on a £10,000 investment. And with a 60% barrier tested only at the end, capital was protected against far bigger falls too. It's a design that gives investors several chances to be paid, with a growing margin of safety each year.

Defensive and income plans

Defensive kick-outs

Defensive plans set the kick-out level below the starting level from the outset — for example 90% or 85%. That means the plan can pay out even if the market has fallen modestly. The coupon is usually a little lower than on a classic plan, but the chance of an early payout is much higher. Many cautious investors and retirees prefer this trade.

Income and phoenix autocalls

Income versions pay a regular coupon instead of — or as well as — the snowball. Investec's FTSE 100 Defensive Income Plan, for example, paid 1.50% every quarter (6% a year) whenever the FTSE 100 was above 80% of its starting level, and could kick out from year two if the index was above 105%. Capital was protected by a 60% barrier tested only at maturity.

Phoenix notes take this further: they pay income while the market is above an income barrier, and many include a "memory" feature, so any coupon missed during a dip is paid later once the market recovers. For anyone living on their investments in Thailand, income autocalls can provide a strong, regular cash flow to sit alongside a pension.

Where to start

Kick-out plans from leading banks, chosen around your goals — and better rates when you move money.

A decade of strong results

Kick-out plans have one of the best track records of any structured product. The 2026 Autocall Structured Product Review, produced by IDAD and Ian Lowes, looked at every FTSE-linked kick-out plan maturing in the UK between 2016 and 2025:

• More than 2,000 plans matured over the decade.
• 7.44% a year was the average annualised return.
• 2.3 years was the average time to pay out.
• 99.7% delivered a positive return, and none lost capital when held to term.
• In 2025, all 338 maturing plans returned capital plus profit, averaging 7.85% a year over just 1.98 years.

Across all UK structured products, the 669 that matured in 2024 averaged 7.19% a year. Those results came from plans issued by banks including HSBC, Morgan Stanley, Citigroup, BNP Paribas, Barclays, Credit Agricole and Goldman Sachs. As with any investment, past results aren't a guarantee — which is why Lawrence focuses on well-designed plans from strong banks.

The protection barrier

Every kick-out plan has a safety net for the rare case where it reaches the end of its term without kicking out. On most plans, your capital is returned in full as long as the index is above a protection barrier — commonly 60% of its starting level. That means the market can fall by up to 40% over the whole term and you still get every penny back.

The most investor-friendly barriers, like those on the BNP Paribas, Investec and Morgan Stanley plans described here, are European barriers: they're checked only on the final date. Dips along the way don't matter at all. Our guide to capital protection explains barriers in detail.

Real kick-out plans compared

Three published plans from major banks, showing the range of designs on offer.

From published fact sheets and product pages: Mattioli Woods (BNP Paribas), Investec, and StructuredRetailProducts.com (6 May 2026) for the Morgan Stanley plan. Terms vary with market conditions at launch.

Quarterly and longer-dated plans

Banks keep innovating. Some newer plans check the kick-out level every quarter rather than every year, giving investors four chances a year to be paid. In April 2026, for example, Morgan Stanley launched a ten-year FTSE 100 plan with quarterly kick-out observations and a 60% barrier at maturity, distributed in the UK by iBC and managed by Meteor. A longer maximum term lets the bank offer more attractive terms, while frequent observations mean money can come back quickly when markets cooperate.

Some plans also follow modified indices — such as a version of the FTSE 100 with a fixed dividend deduction — which can allow banks to offer stronger terms. Lawrence will explain what each underlying means for your plan.

Why autocallables work so well

The genius of the autocallable lies in what markets usually do. Over any few years, major stock markets spend a lot of time near or above their earlier levels, and kick-out plans reward investors for exactly that — without needing a rally. Here's why so many investors choose them:

• You're paid in flat markets — most investments need growth; autocalls don't.
• Returns are fixed and known — no guessing about how much the market might rise.
• Money often comes back early — the decade's average was 2.3 years.
• Patience is rewarded — snowballing coupons and step-downs make later payouts bigger and more likely.
• A large protection buffer — commonly 40% — for the rare plan that runs to the end.
• Issued by leading banks — household names with published credit ratings.

Kick-out plans for expats in Thailand

Kick-out plans are a natural fit for expats. They're available in pounds, dollars and euros, can be held in international accounts, offshore bonds and platforms, and don't depend on where you live. Expats in Thailand often use them to:

• Put a lump sum to work after selling a UK home or taking a pension lump sum.
• Beat deposit rates on savings held in hard currencies.
• Create income from an income or phoenix autocall to sit alongside a pension.
• Build a ladder of plans so money comes back regularly.

When a plan kicks out, many clients bring part of the proceeds to Thailand. A specialist FX provider gets you far more baht than a bank.

Building a ladder of kick-out plans

Many of Lawrence's clients don't hold just one plan — they build a ladder. By investing in a new kick-out plan every few months, with different banks and start dates, they create a rolling portfolio where plans kick out regularly, returns arrive throughout the year and each payout can be reinvested at the latest terms.

A ladder spreads your money across several strong banks, smooths out the effect of when each plan starts, and turns kick-out plans into a steady engine of returns for part of your portfolio. Our guide to structured notes shows how they fit alongside your other investments.

If a plan runs its full course

Most kick-out plans pay out well before their final date — that's what the decade's 2.3-year average shows. For the plans that do run to the end, there are three possible outcomes:

• The index is at or above the final kick-out level — you receive your capital plus every year's return. On the BNP Paribas plan, that was 150.75% after five years; on Investec's step-down plan, it was triggered at just 80% of the starting level.
• The index is below the kick-out level but above the barrier — your capital comes back in full.
• The index has fallen below the barrier — your capital is reduced in line with the index's fall. With a 60% barrier, this only happens after a fall of more than 40% over the whole term.

This is why Lawrence favours plans with European barriers at 60% or lower, step-down or defensive kick-out levels, and strong issuers — features that tilt the odds firmly in investors' favour.

Choosing the term and observation frequency

Two design choices make a real difference to how a plan suits you.

The maximum term

Plans typically run for a maximum of five to ten years. A longer maximum term gives the bank more time, which usually means a higher coupon or a lower kick-out level — but because most plans pay out early, the maximum is rarely what investors actually experience. Choose a term that matches money you won't need, and let the kick-out do the rest.

How often the level is checked

Annual observations are the classic design. Semi-annual and quarterly observations give more chances to kick out each year, so money can come back faster when markets are strong — ideal for investors who like their capital working in shorter cycles and being reinvested at the latest terms.

Lawrence will show you how different terms and frequencies change the coupon on offer, so you can choose the combination that fits your plans.

How Lawrence chooses kick-out plans

1. A strong issuing bank with good credit ratings.
2. A major underlying index such as the FTSE 100 or S&P 500.
3. An attractive coupon that rewards the term and the barrier fairly.
4. A kick-out level you're likely to reach — at the start, stepping down or defensive.
5. A European barrier at 60% or lower, checked only at the end.
6. The right observation frequency — annual, semi-annual or quarterly.
7. The right version for you — growth, defensive or income.
8. The right currency and term for your plans.

Reading the plan documents

Every kick-out plan comes with a fact sheet or brochure, a key information document and final terms. Here's what to look for:

• The issuer or counterparty — the bank behind the plan.
• The underlying — which index, or indices.
• The coupon — how much, and whether it snowballs or is paid as income.
• The kick-out schedule — dates and levels, including any step-downs.
• The barrier — its level and when it's tested.
• The maximum term and final maturity date.
• The minimum investment — often from £1,000 to £3,000 on UK retail plans.
• Performance scenarios and costs in the key information document.

Lawrence will walk you through every document before you invest.

Getting the most from kick-out plans

• Spread across several plans and banks.
• Stagger start dates to create a ladder.
• Reinvest kick-outs to keep your money working.
• Consider step-down or defensive plans for extra comfort.
• Use income versions if you need cash flow.
• Keep a cash reserve so plans can run their course.
• Plan your currency for when proceeds arrive.
• Buy through someone you trust — never from a cold call.

Three real-world examples

These are illustrations, not real clients.

Simon, 49 — a classic kick-out

Simon invested part of a bonus in a FTSE 100 kick-out plan from a major bank. A year later the index was above its starting level, the plan kicked out with its coupon, and he rolled the proceeds into a new plan.

Linda, 66 — a defensive income plan

Linda wanted regular income to top up her pension in Chiang Mai. Lawrence arranged a defensive income autocall paying a quarterly coupon while the FTSE 100 stayed above 80% of its start, with a 60% barrier at the end. She converts each coupon into baht.

Paul and Sue — a rolling ladder

Paul and Sue invest in a new step-down plan every six months. With four plans running at any time, kick-outs arrive regularly, and they bring part of each payout to Thailand through Vita Capital.

Your kick-out plan checklist

1. Decide how much to invest and for how long.
2. Choose your version — classic, step-down, defensive or income.
3. Pick a strong issuing bank.
4. Check the coupon and kick-out schedule.
5. Check the barrier and when it's tested.
6. Read the key information document.
7. Spread and stagger across several plans.
8. Talk to Lawrence about the plans available now.

Investing safely online

Only invest through people you know and trust, confirm any bank details directly before sending money, and use a private, protected connection when you log in to investment platforms on hotel, café or condo Wi-Fi.

How we researched this guide

This guide draws on published plan terms from Investec (FTSE 100 Step Down Kick-Out Plan 42 and FTSE 100 Defensive Income Plan 23), Mattioli Woods (BNP Paribas FTSE/S&P Kickout Plan, August 2020) and StructuredRetailProducts.com (Morgan Stanley FTSE 100 EW45 plan, 6 May 2026); the 2026 Autocall Structured Product Review by IDAD and Ian Lowes, as reported by Professional Paraplanner (13 January 2026); and StructuredRetailProducts.com on 2024 maturities and UK issuance. Checked 14 October 2026. Returns aren't guaranteed and capital can be at risk below the barrier; outcomes depend on each plan's terms and the issuing bank. This guide is general information, not personal financial advice.