Barclays Wealth has boosted the pay-off on the annual kick-out option of its latest Defined Returns Plan to 11%.
The announcement comes as Barclays Wealth closes its previous series on 31 January, a week earlier than scheduled.
Investors are now offered 11% annual return for each year the plan is in force, while the plan will automatically mature and deliver the accumulated return if the index is the same or higher than its starting level on any annual anniversary.
In the event of the FTSE 100 being lower at maturity than at the starting date, investors will receive back all of their original investment. However, if the index falls by 50% and fails to recover to its initial level by maturity, capital is lost 1:1 with the index.
Open between 1 February and 4 April, the investment also features two capital protected options delivering a fixed return of either 18% (three-year option) or 38.5% (five-year option), provided the level of the FTSE 100 at maturity is equal to or higher than its starting level.
Returns are taxed as capital gains, allowing investors to use their annual CGT exemption.
The minimum investment is £4,000. Advisers receive 3% commission or 2.5% for the three-year option.
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