Barclays Wealth has launched a structured product aiming to pay 8.25 per cent within the first year of this six-year investment.

The Barclays Wealth Defined Returns Annual Kick Out plan offers a potential return realised on any anniversary – from the first onwards – where the FTSE 100 Index is at or above its starting level.

So, if the FTSE 100 is at or above its starting level at its second anniversary, investors will receive 16.5 per cent and their capital will be repaid. If this occurs on its third anniversary, investors will receive 24.75 per cent; and so on up to 49.5 per cent on its sixth and final anniversary.

If there has been no early disposal after six years, capital will be reduced if the index closes below 50 per cent of its starting level, at maturity.

Should this happen, investors will lose capital on a one for one basis with the index.

Richard Henry, director of investor solutions at Barclays Wealth said increased market volatility enabled the bank to improve the terms offered in its previous Annual Kick-out Plan.

He added, ‘This is something we think clients will welcome as they seek products which provide a competitive rate of return.

‘Despite negligible year-on-year FTSE performance, last year’s June 2010 edition of the product recently kicked out at a rate of 10 per cent. This demonstrates the ability of the kick-out product to deliver returns even in a benign growth environment.’