Structured income products backed by HSBC, Barclays and other A+ rated banks are now offering double the return available from government-guaranteed bank savings accounts. But investors need to weigh up the strength of the capital protection provided by these products, as well as the banks behind them, say advisers.

Blue Sky Asset Management this week launched its six-year Capital Accumulator Auto-Call Plan, which offers a potential annual income of 8 per cent - even if the FTSE 100 index, to which it is linked, falls. Its "defensive auto-call" derivative structure means that the plan will close on its first, or any subsequent, anniversary and return original capital plus 8 per cent a year, if the FTSE is at or above 80 per cent of its starting level. If the market remains 20 per cent down and no payout is triggered in subsequent years, 100 per cent capital protection is still provided, if the FTSE isn't more than 50 per cent down from the starting level.