Barclays Wealth has launched a Regular Income Bond. The FTSE-linked product offers investors the option of either a fixed annual payment or monthly income over a six-year period. The annual option pays 5.60 per cent for each year the plan is held, while the monthly option gives investors 0.46 per cent each month.

In both options, investors’ capital is lost if at any time during the term the FTSE falls to a level more than 50 per cent below its starting level and is below the starting level at maturity. If this does occur, capital will be lost on a 1:1 basis.

“With interest rates continuing to stay at record lows, and consensus suggesting they may stay there for some time to come, investors are having to look further afield for alternative means of deriving income. Some options, such as alternative investment funds and equity income funds, offer a higher level of income but come with an increased level of risk. Our new RIB is designed to bridge the gap between risk and reward,” said Lisa Chaudhuri, vice president at Barclays Wealth.