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Barclays Wealth, is launching the plans as demand continues to grow for protected investments, with its sales in November exceeding October’s previous record.

It says the DRP Capital Protection plan offers investors tempted to move their money into cash a higher rate of return plus the benefit of full capital protection.

DRP CP offers three options delivering a fixed return of either 18 per cent over three-years, 28 per cent over four years and 40 per cent over five-years.

All three investments offer full capital protection when held for their full terms and will deliver their stated return provided the FTSE 100 at maturity is equal to or higher than its level at the starting date.

DRP CP’s sister product, DRP Annual Kick-Out, also launches today, offering the potential for a fixed payout after one year.

DRP AKO will deliver a 13.5 per cent return after 12 months as long as the FTSE 100 is at or above its starting level on the plan’s first anniversary.

Should this not occur, the plan will continue to its second anniversary, at which it will pay out twice the potential first year return – 27 per cent - if the FTSE matches or exceeds its starting point.

if the index does this on any anniversary, including the final one it will automatically mature and deliver 13.5 per cent multiplied by the number of years that the plan has been live.

If it does not automatically mature, the investment will return full money back unless the FTSE 100 is lower at maturity than at the starting date (and at any time had fallen by 50 per cent or more from its initial level). In this event, capital is lost 1:1 with the performance of the index.

Colin Dickie, director, Barclays Wealth, said: "Uncertain markets and high volatility may tempt investors to move into cash but we believe our DRP investments offer a highly credible alternative, particularly with interest rates expected to fall even further in the coming months.

"When the relative tax merits of each is considered, there is going to come a tipping point where investors will accept the need to take some risk which holds out the prospect of a much enhanced return.

"Higher rate taxpayers using their CGT exemption could enjoy a potential payoff more than triple the net return they would get from a cash account over four and five years, and very close to this multiple over three years.

"Additionally depressed markets may offer investors a great opportunity to lock-in at index levels last seen in 2003."