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Barclays Wealth new 5 year fixed rate bond offers 4%

06 May 2009 / by Rachael Stiles
Barclays Wealth has launched a five year fixed rate bond which offers investors the opportunity to lock in their cash at a high level, but without putting their original capital at risk.

A deposit based investment, investors can use the Barclays five year fixed rate bond as regular income, at four per cent gross, or, if they prefer, they can leave it untouched with the deferred income option to receive a rate of 22 per cent at maturity.

Because the bond is not linked to any index, the returns are not dependant on performance, offering a fixed rate of interest regardless of what happens in the markets, or if interest rates change.

Commenting on the new fixed rate bond, director at Barclays Wealth Colin Dickie said: "Investors looking to lock-in a competitive rate of income for five years are not spoilt for choice at the moment, particularly if they would prefer not to put their capital at risk.

"The Fixed Rate Bond is designed for such an investor and provides additional comfort in the fact that it is backed by Barclays Bank, which is rated AA- by S&P's."

And, with interest rates on standard savings accounts what they are, offering record low returns, Mr Dickie believes fixed rate bonds could fill a gap in investors' saving plans.

"For those who believe base rates - and therefore savings accounts - are unlikely to rise for some time this bond could provide a compelling solution," he said.

Apply online for the Barclays five year fixed rate bond or compare fixed rate bonds

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