Barclays Wealth has relaunched its Regular Income Bond (RIB).
Investors in the six-year plan can choose either an annual payment of 5.75% or a monthly payment of 0.4667%.
In both options, investors' capital is lost if at any time during the term the FTSE falls to a level more than 50% below its starting level and, at maturity, is below its starting level. If this does occur, capital will be lost on a 1:1 basis.
Barclays Bank serves as counterparty for the plan.
Lisa Chaudhuri, vice president, Barclays Wealth, says: "With interest rates remaining low and looking unlikely to rise in the foreseeable future, investors are increasingly on the lookout for a fixed, dependable form of income.
"Our new RIB offers a viable alternative to traditional equity-based income funds as it gives investors a fixed rate of return over a set period of time and offers a premium over cash, with risk to initial investment only if FTSE loses more than half its value during the term."
The plan is open for investment until 11 October 2010, set at a minimum of £5,100. It is available as an ISA, SIPP and SSAS, with commission at 3%.
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