Barclays Wealth offers income seekers a six-year solution

Barclays Wealth is extending the investment term of its popular Regular Income Bond to enable balanced investors to secure an attractive rate of interest for six years.

Previously a five-year product, the FTSE 100-linked Regular Income Bond, which launched this week, offers investors an annual return of 7% or a monthly return 0.57%. In both cases the income is fixed and will be paid regardless of the performance of the index.

Investors' capital will be returned in full unless the FTSE 100 falls by more than 50% at any point and is lower than its starting level at maturity. Should this occur, capital will be reduced 1:1 in line with the index.

Lisa Chaudhuri, manager, Barclays Wealth, says: "With savings rates at record lows and dividends being cut with alarming frequency it is not a good environment for investors seeking a regular and dependable stream of income.

"The Regular Income Bond is designed for those who are prepared to accept a risk to their capital in return for a rate of return 6.5% above the current base rate. We think this presents a compelling alternative to some of the more traditional methods of gaining regular income which are not meeting the needs of investors presently."