- Regular income of 5.50% a year or 0.45% a month
- Capital is at risk if the FTSE falls by more than 50% during the term
- Six-year investment issued by Barclays Bank PLC
Barclays Wealth has launched a Regular Income Bond for investors looking for a fixed, dependable level of income over the medium term.
Available now, this FTSE-linked product offers investors the option of either a fixed annual payment or monthly income over a six-year period. The annual option pays 5.50% for each year the Plan is held, while the monthly option gives investors 0.45% each month.
In both options, investors’ capital is lost if at any time during the term the FTSE falls to a level more than 50% below its starting level and is below the starting level at maturity. If this does occur, capital will be lost on a 1:1 basis.
The Regular Income Bond is available for stocks and shares ISA investment in both the 2010/2011 and 2011/2012 tax years. Clients may sell their investment prior to maturity but as a result, may get back less than they originally invested. The Plan is issued by Barclays Bank PLC and clients will be subject to counterparty risk. Full details of this product can be found at http://www.barclayswealthstructuredinvestments.com.
Commenting, Lisa Chaudhuri, vice president at Barclays Wealth, says: “Although general consensus points to interest rates rising in the not-too-distant future, investors are still facing a challenge when it comes to finding attractive income-generating investments without taking on unnecessary risk.
“Our Regular Income Bond offers investors a worthwhile solution for those requiring a consistent income stream. Its availability as a Dual Stocks and Shares ISA investment will also appeal to income seekers considering how to use their allowance this year.”