The FTSE 100-linked bond, for which the minimum investment is £5,100 (around $8,000), offers investors the option of either a fixed annual payment or monthly income; the annual option pays 5.75 per cent for each year the plan is held, while the monthly option gives investors 0.4667 per cent each month.

In both cases, investors’ capital is at risk if at any time during the term the FTSE falls more than 50 per cent below its starting level. If this does occur, capital will be lost on a one-to-one basis with the index.

“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 the FTSE loses more than half its value during the term,” said Lisa Chaudhuri, vice president at Barclays Wealth.