- New structured deposit issued by Barclays Bank PLC
- Potential return of more than 30% at maturity
- Lock-in feature can ring fence returns at annual anniversaries
Barclays Wealth is launching a series of structured deposits aimed at retail savers. The first offering – Wealthbuilder – aims to provide depositors with a maximum return of 31.20% after six-years. The FTSE 100-linked deposit locks in 5.20% on each anniversary that the Index is at or above its starting level. If the Index is below its starting level on any anniversary, no return will be locked-in. Under these circumstances, depositors will receive back their original capital which would be less than had they placed their money in a standard deposit account.
Investors’ full capital is returned at maturity irrespective of market performance. However, if investors withdraw from the product before maturity, some of their capital may be lost.
Full details of this product can be found at http:// www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “With interest rates languishing at record lows and little realistic prospect of an upward move any time soon, savers face a real lack of options when seeking attractive returns in this low-growth environment.
“The Wealthbuilder – the first investment of our new structured deposit series – offers a compelling alternative to a conventional deposit account, offering the same capital security as a traditional deposit, while returning a potential 31.20% over the six-year term if the FTSE trades at or above the starting level on annual observations.”