Barclays Wealth hikes rates on Defined Returns Plan

Barclays Wealth is launching a new Defined Returns Plan with a significantly enhanced annual kick-out option and improved pay-offs for its three- and five-year investment terms.

The new kick-out offers investors a 12.75 per cent return for each year the plan is in force - an increase of 1.75 per cent over the preceding series.

If the index is either the same or higher than its starting level on any annual anniversary the plan will automatically mature and deliver the accumulated return*.

The investment, which is open between 7 April and 2 June 2008, also features two capital protected options delivering a fixed return of either 18.75 per cent (three-year option) or 40 per cent (five-year option) provided the level of the FTSE 100 at maturity is equal to or higher than its level at the starting date.

Previously, the pay-offs were 18 per cent and 38.5 per cent respectively.All returns are taxed as capital gains, allowing investors to use their annual CGT exemption.

This treatment also frees investors to use their ISA allowance for a different investment.

Lisa Chaudhuri, manager, Barclays Wealth says: "We have managed to improve the terms for all three investment options of the new Defined Returns Plan, with the new annual kick-out improving by a considerable margin as it had most to gain through recent conditions.

We believe 12.75 per cent per annum is a compelling offer for investors seeking potentially high rates of return, particularly given current volatile market conditions and an improved CGT environment." *In the event of the FTSE 100 being lower at maturity than it was at the starting date, investors will receive back all of their original investment unless the index falls by 50 per cent and fails to recover to its initial level by maturity, in which case capital is lost 1:1 with the index.

Back to top