The short answer

A structured note is an investment issued by a major bank that pays a return linked to a stock market index or shares, according to a fixed formula agreed at the start. The most popular type, the kick-out (autocallable) plan, pays a fixed return — currently up to 13.56% a year on US dollar notes — as soon as the index is at or above its starting level on an anniversary, so you can earn a strong return in flat as well as rising markets. Most notes also include a protection barrier, so your capital is returned in full even if markets fall substantially — on today's notes, by up to 30%. Notes are issued by household-name banks such as HSBC, BNP Paribas, Barclays, Citigroup and Goldman Sachs. They work best for money you can invest for the full term, as part of a well-spread portfolio. Lawrence arranges structured notes 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.

Why investors love structured notes

Structured notes solve a problem every investor faces: how to earn more than cash without riding every up and down of the stock market. Here's what makes them so popular.

For many investors, the biggest attraction is certainty. Instead of hoping the market rises, you know in advance exactly what each outcome will pay — and the most common outcomes are positive. That makes structured notes a natural fit for people with a lump sum to invest, retirees wanting more than deposit rates, and anyone who'd like part of their portfolio working to a clear plan.

How a structured note works

Behind every note sits a simple, proven design that banks have refined over decades.

1. The bank's promise

A major international bank issues the note and commits to pay you on the agreed terms. This is why the strength of the issuer matters — and why the notes Lawrence arranges come from large, highly rated global banks.

2. The return engine

The note is linked to an underlying market — for example the FTSE 100, the S&P 500, the Euro Stoxx 50 or a basket of blue-chip shares. A formula, agreed at the start, turns that market's performance into your return: a fixed coupon if the index is at or above a level, a multiple of its rise, or a regular income.

3. The protection buffer

Most notes include a barrier — often 60% or 65% of the starting level. As long as the market hasn't fallen below it at maturity, your capital comes back in full. That gives you a large cushion: markets can fall 35–40% and you still get every penny back.

The key terms you'll see on any note are the issuer, the underlying index, the term, the coupon, the kick-out level, the barrier and the observation dates when levels are checked. Lawrence will walk you through every one.

The main types of structured note

Four designs for four different goals — side by side.

Every note has its own terms, set out in its key information document. Returns and protection depend on the issuing bank.

Kick-out plans: the investor favourite

Kick-out plans — also called autocallables — are the most popular structured notes in the world, and it's easy to see why. They ask one simple question on each anniversary: is the market at or above where it started? If the answer is yes, the plan pays you back with your fixed return and ends. If not, it simply rolls on to the next year, with the return still building up.

Take a real published example: a five-year BNP Paribas plan linked to the FTSE 100 and S&P 500, paying 10.15% for every year it ran. On £10,000, a kick-out after one year paid back £11,015; after three years, £13,045; after five, £15,075. The indices didn't need to rise — only to be at or above their starting levels. And if the plan had reached the end without kicking out, capital was still returned in full unless either index had fallen below 60% of its start.

The track record is impressive. Over the decade to 2025, more than 2,000 FTSE-linked kick-out plans matured with an average return of 7.44% a year and an average life of just 2.3 years — 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. Our guide to autocallable notes goes into more detail.

Protected, growth and income notes

Capital-protected notes

For investors who want stock market growth with full peace of mind, capital-protected notes aim to return 100% of your capital at maturity, plus a share of any rise in the market. They're a popular choice for cautious investors and retirees who want their money working harder than in a deposit. Our guide to capital protection explains how protection works.

Growth notes

Growth notes can multiply the market's performance — for example paying 150% or 200% of an index's rise — while a barrier protects your capital against moderate falls. They suit investors who expect markets to grow and want to make the most of it.

Income notes

Income notes pay a regular coupon — monthly, quarterly or yearly — as long as the market stays above a set level. For retirees and anyone living on their investments, they can provide an attractive, predictable income stream.

Popular features that make notes even more attractive

Banks compete hard for investors' money, and over the years they've added clever features that make notes more flexible and more likely to pay out. Here are some you'll often see.

Step-down kick-outs

The level the index needs to reach to trigger a kick-out falls a little each year — for example 100% in year one, 95% in year two, 90% in year three. That makes an early payout more likely, even if markets dip.

Defensive kick-outs

Some plans kick out even if the index is below its starting level — for example at 90% or 85% — trading a slightly lower coupon for a much higher chance of being paid.

Memory coupons

On income notes, a "memory" feature means any coupon missed because the index was below its level is paid later, in full, once the index recovers — so a temporary dip doesn't cost you the income.

Phoenix income

Phoenix notes pay a regular income while the index stays above a lower income barrier, and can still kick out early when the index is back at its starting level — combining income and an early payout in one note.

Lower barriers

Notes with barriers of 50% or 55% give an even bigger protection buffer, for investors who want maximum peace of mind.

Lawrence will explain which features suit your goals — and show you notes that combine the right ones.

Where to start

Structured notes from leading banks, arranged around your goals — and better rates when you move money.

The track record

Structured notes have delivered consistently strong results for UK investors in recent years:

• 2024 maturities — 669 UK retail structured products matured with an average return of 7.19% a year, over an average term of under three years.
• A decade of kick-out plans — more than 2,000 FTSE-linked kick-out plans maturing between 2016 and 2025 averaged 7.44% a year, with an average life of 2.3 years. None lost capital when held to term, and 99.7% delivered a gain (2026 Autocall Structured Product Review by IDAD and Ian Lowes).
• 2025 — every one of the 338 FTSE-linked kick-out plans maturing that year returned capital plus profit, averaging 7.85% a year.

Those are returns well above what cash has paid over the same period, achieved with a defined outcome and, for most plans, a payout well before the end of the term. As with any investment, past performance isn't a guarantee of future returns — which is why Lawrence focuses on well-designed notes from strong banks.

The banks behind the notes

Structured notes are issued by some of the largest and most respected banks in the world. The decade-long review of UK kick-out plans covered notes from issuers including HSBC, Morgan Stanley, Citigroup, BNP Paribas, Barclays, Credit Agricole and Goldman Sachs. The BNP Paribas plan above, for example, carried credit ratings of AA- from Fitch, Aa3 from Moody's and A+ from S&P.

Choosing a strong issuer is one of the most important decisions in structured investing — the bank's promise is what stands behind your return and your protection. Investors learned that lesson in 2008, when plans backed by Lehman Brothers were caught up in its collapse. Today's market is very different: issuers are named clearly in every document, their ratings are published, and good advisers spread clients' money across several top-tier banks. That's exactly how Lawrence works. Our guide to issuer credit risk explains how to judge a bank.

Structured notes vs other choices

How a typical kick-out plan compares with cash and with investing directly in the market.

A general comparison. Kick-out figures from the 2026 Autocall Structured Product Review (IDAD and Ian Lowes). Every note has its own terms.

Who structured notes suit

• Investors with a lump sum — from a property sale, pension lump sum, bonus or inheritance — who want it working to a clear plan.
• Retirees looking for returns well above deposit rates, or a regular income.
• Cautious investors who like the idea of a defined outcome and a protection buffer.
• Experienced investors wanting to add a different return pattern to their portfolio.
• Anyone who believes markets will be flat or rise moderately — exactly when kick-out plans shine.
• Expats wanting investments in pounds, dollars or euros.

Structured notes work best for money you can leave invested for the full term, alongside cash for day-to-day needs and other investments. Lawrence will help you decide how much is right for you.

How notes fit into your portfolio

Private banks and wealth managers around the world use structured notes as a building block alongside funds, bonds and cash. A popular approach is to hold several notes at once — from different banks, linked to different markets and started at different times — so that returns arrive regularly and no single outcome dominates. As each note kicks out, the proceeds can be reinvested into a fresh note or used for income.

That rolling approach can turn structured notes into a steady engine of returns for part of your portfolio. Lawrence builds this kind of ladder for clients, matching the notes to their goals, timescales and currencies. Our guide to offshore investment structures explains where notes can be held, including inside offshore bonds and platforms.

Structured notes for expats in Thailand

Structured notes are particularly well suited to expats. They're available in major currencies, can be held in international accounts, offshore bonds and platforms, and don't depend on which country you live in. Many expats in Thailand use them for:

• Putting a lump sum to work after selling a UK property or taking a pension lump sum.
• Earning more than deposit rates on savings held in pounds, dollars or euros.
• Generating income to supplement a pension in retirement.
• Diversifying a portfolio built around funds and shares.

When a note kicks out, many clients convert part of the proceeds into baht to fund life in Thailand. Using a specialist FX provider rather than a bank keeps more of your gain in your pocket.

How to choose a great structured note

The best notes share a few qualities. Here's what Lawrence looks for when selecting notes for clients:

1. A strong, well-known issuer with good credit ratings.
2. A well-known underlying — major indices such as the FTSE 100 or S&P 500.
3. An attractive coupon that fairly rewards the term and the barrier.
4. A comfortable barrier — 60% or lower gives a large protection buffer.
5. A barrier checked only at maturity, so temporary dips don't matter.
6. A kick-out level you're likely to reach — often 100% of the start, or lower on step-down plans.
7. Clear, competitive costs set out in the documents.
8. The right currency and term for your plans.

Every note comes with a key information document showing how it performs in different market conditions, and the final terms. Lawrence will go through them with you so you know exactly what you're investing in.

Reading the documents with confidence

Every structured note comes with clear documents, and once you know where to look they're straightforward:

• The issuer — named near the start, with its credit ratings.
• The underlying — the index or shares the note follows.
• The dates — when the note starts, when kick-outs are checked and when it matures.
• The coupon and kick-out levels — what you earn, and when.
• The barrier — your protection buffer, and when it's checked.
• Performance scenarios — what you'd receive in different markets.
• Costs — set out clearly in the key information document.
• Early exit — how the issuer will buy the note back if your plans change.

Planning for the full term

Structured notes are designed to be held until they kick out or mature — and with kick-out plans averaging just over two years, most investors don't have to wait long. Issuers usually offer to buy notes back before then if your plans change, at a price that reflects markets on the day. The simplest approach is to invest money you won't need for the full term, keep a cash reserve for everyday needs, and let the note do its job.

Our guide to investment risk and capacity for loss helps you decide how much to invest, and our guide to structured product liquidity and early exit covers buy-backs in detail.

Getting the most from structured notes

• Spread across several notes and banks rather than one big investment.
• Stagger your start dates so returns arrive regularly.
• Reinvest kick-out proceeds to keep your money working.
• Choose major indices and strong issuers.
• Match the currency to your plans — pounds, dollars or euros.
• Keep a cash reserve so you never need to sell early.
• Read the documents — or have Lawrence walk you through them.
• Buy through someone you trust — never from a cold call.

Three real-world examples

These are illustrations, not real clients.

Karen, 52 — a lump sum working harder

After selling her UK flat, Karen invested part of the proceeds in two kick-out plans from different major banks, alongside a diversified portfolio. The first kicked out after a year with its full coupon, and she reinvested into a new note.

David, 64 — income in retirement

David wanted more income than his deposits paid. Lawrence arranged an income note paying a quarterly coupon linked to a major index, with a 60% barrier, to sit alongside his pension and a cash reserve.

Paul and Sue — a steady ladder

Paul and Sue invest a set amount into a new note every six months. With several notes running at once, kick-outs arrive regularly — and they convert part of each payout into baht for their life in Hua Hin.

Your structured note checklist

1. Decide how much you'd like to invest and for how long.
2. Choose your goal — growth, defined returns or income.
3. Pick a strong issuer and a major underlying index.
4. Check the coupon, kick-out level and barrier.
5. Read the key information document and final terms.
6. Spread across notes and stagger start dates.
7. Plan your currency for when the note pays out.
8. Talk to Lawrence about the notes 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 a published BNP Paribas FTSE/S&P Kickout Plan fact sheet (Mattioli Woods, August 2020); StructuredRetailProducts.com on 2024 UK maturities (29 January 2025) and UK issuance (1 April 2026); and the 2026 Autocall Structured Product Review by IDAD and Ian Lowes, as reported by Professional Paraplanner (13 January 2026). Checked 14 October 2026. Returns aren't guaranteed and capital can be at risk; outcomes depend on each note's terms and the issuing bank. This guide is general information, not personal financial advice.