Barclays launches FTSE-linked income bond Go compare with our comparison table

Barclays launches FTSE-linked income bond

23 October 2010 / by Paul Dicken

Barclays Wealth has launched a six-year income-paying bond linked to the FTSE 100 index, offering 5.6 per cent interest annually.
 
The Regular Income Bond, a structured investment, requires a minimum £5,100 and will pay a fixed 5.6 per cent interest annually.  A monthly income option is available paying 0.46 per cent each month.

A capital at risk investment, capital will only be lost if the FTSE falls to a level more than 50 per cent below its level at the start of the investment at the end of the term.

Should the FTSE be lower than 50 per cent of its starting level on maturity, 1 per cent of capital would be lost for every 1 per cent below the 50 per cent barrier.

Vice president of Barclays Wealth, Lisa Chaudhuri, said: “With interest rates continuing to stay at record lows, and consensus suggesting they may stay there for some time to come, investors are having to look further afield for alternative means of deriving income.”

“Our new RIB is designed to bridge the gap between risk and reward by offering an attractive return while ensuring investors will receive their capital back at maturity unless the index falls by 50 per cent during the term and is below the starting level at maturity.”

Return of capital is also dependent on the financial counterparty to the investment – Barclays Bank – being able to repay capital and the stated returns.

© Fair Investment Company Ltd

Compare the Regular Income Bond to other structured investment products »

Investing For Income
 Product NameISA OptionIncome YieldMore Info
FTSE 100 Enhanced Income Planyes

5.04%

fixed income

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TAX FREE FIXED INCOME: 6 year investment plan paying a fixed monthly income of 0.42% (equivalent to 5.04% annually). Available as a Stocks & Shares ISA, non-ISA investment and ISA transfer.
FTSE Dual Option Contingent Income Planyes

7.00%

per annum

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Maximum 6 year structured investment plan paying a potential quarterly income of 1.75% (equivalent to 7% annually) and the opportunity to mature early from year 2 onwards. Also available as a Stocks & Shares ISA investment and ISA transfer.
FTSE Contingent Income Planyes

6.56%

per annum

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A maximum 6 year investment plan paying a potential quarterly income of 1.64% (equivalent to 6.56% per year) and the opportunity to mature early. Also available for Stocks & Shares ISA and ISA transfer.
FTSE Quarterly Contingent Income Planyes

6.00%

per annum

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Maximum 6 year structured investment plan paying a potential quarterly income of 1.5% (equivalent to 6% annually) and the opportunity to mature early from year 3 onwards. Also available as a Stocks & Shares NISA investment and NISA transfer.
FTSE 100 Defined Income Planyes

6.00%

per annum

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6 year investment plan paying a potential quarterly income of 1.5% (equivalent to 6% annually). Available as a Stocks & Shares ISA, non-ISA investment and ISA transfer.
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.