Abbey has launched the second issue of its popular Guaranteed Income Bond investment, after the first issue was sold out in only two weeks.
The investment offers an interest savings rate of 3.80 per cent net per year (4.75 per cent annual gross equivalent), as well as the full return of their investment capital after four years.
This competitive interest savings rate is better than a range of savings bonds that are currently available.
Should investors wish to receive the interest on their investment on a monthly or quarterly basis, the interest rate is reduced to 3.70 per cent.
The income from the investment bond is paid out net of basic rate income tax, which is not reclaimable by those not paying tax or those paying starting rate tax.
Pak Chan, Abbey’s head of investments marketing, said the Guaranteed Income Bond provides customers capital security and the certainty of a regular income.
"From our conversations with customers, it seems ideal for retired people looking to draw income from their savings," he added.
Abbey is one of the UK's leading personal financial services companies.
The range of services includes mortgages and savings, bank accounts, loans and credit cards, long-term investments including pensions and unit trusts, life, critical illness and unemployment cover and household insurance. It also provides offshore banking for expatriates.
Abbey is the sixth largest bank by assets and the second largest provider of mortgages and savings in the UK.
Abbey issues second investment bond
Abbey issues second investment bond
Tue, 28 Jun 2005
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