Barclays Wealth launches five-year fixed rate bond

Barclays Wealth is launching a five-year Fixed Rate Bond for investors seeking to lock-in a high level of income without putting their original capital at risk.

The deposit-based investment, which launches today, offers the choice of an annual income of 4% gross or a payment of 22% at maturity for investors choosing the deferred income option.

Income is not dependant on the performance of an index or asset and the bond offers full capital protection at maturity. If the bond is sold before maturity, depositors may get back less than they invested.

Returns are paid gross within a pension arrangement.

The minimum investment is £10,000.

Full details of the bond can be found at barclaysinvestors.com/ifa

Colin Dickie, director, Barclays Wealth, says: "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. For those who believe base rates - and therefore savings accounts - are unlikely to rise for some time this bond could provide a compelling solution."