Barclays Wealth issues regular income bond

Barclays Wealth has announced it will introduce a regular income bond for consumers looking for the best savings rates and a frequent, dependable level of income.

The latest bond is linked to the FTSE and offers investors the option of a fixed annual payment or monthly income over a six-year period.

Savers can expect an annual rate of 5.6 per cent for each year the plan is held, while the monthly option pays investors 0.46 per cent each month.

Lisa Chaudhuri, vice president at Barclays Wealth, 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."

She added that the latest regular income bond is designed to bridge the gap between risk and reward by offering a good return on money invested.

However consumers are warned that capital will be lost on a 1:1 basis if during the term the FTSE falls to a level more than 50 per cent below its starting level and is below the starting level, at maturity.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-10-25 12:47:30 © Moneyextra.com