Barclays Wealth launches new regular income bond

Barclays Wealth has launched a new Regular Income Bond, from which investors can receive a monthly income of 0.52% for five years. This new bond offers investors a competitive return, especially considering the current low interest-rate environment and aims to bridge the gap between low risk / low return and high risk / high return products.  The new Regular Income Bond is open to investment until 7th December 2011.

If the minimum initial amount (£5,340) were invested in the new Regular Income Bond, the monthly return would be £27.76, investors would receive £1,666 over the entire term.  It is important to realise repayment of initial capital at the end of the plan is subject to the performance of the FTSE 100 index during the term. If the index reaches a level more than 50% below its initial index level at any point during the term, and at maturity is below the starting level, the capital repayment will be reduced by the percentage by which the index has fallen between the starting level and maturity, otherwise capital is repaid in full.   

The Regular Income Bond is designed for investors who are looking for a monthly income higher than that available from cash or some fixed rate bonds, and are willing to accept a degree of risk to their capital.  The product offers investors an alternative to income funds, which generally offer no downside protection, as well as from stocks (as dividends can be reduced or cancelled).  The Regular Income Bond is a structured capital as risk product.

Richard Henry, Director, Investor Solutions, Barclays Wealth, said: "With savings rates at historically low levels, generating regular income can prove challenging for investors.  With this new Regular Income Bond, we aim to offer returns higher than those available from cash for investors willing to accept a degree of risk to their return at maturity."

"At Barclays Wealth we are committed to constantly offering competitive investment solutions to complement a variety of risk profiles. We hope that the new Regular Income Bond will prove an attractive and innovative investment solution for investors."