Abbey has launched the sixth issue of its Guaranteed Income Bond (GIB).
People saving money in the savings bond are guaranteed that they will get their initial investment back at the end of the savings bond's four-year term.
The savings interest rate on the savings bond is 3.8 per cent net if it the interest is taken annually. Investors could also opt to take interest monthly and then a savings interest rate of 3.75 per cent applies.
Investors should invest a minimum of £5,000 in the savings bond. They are being warned that if they should withdraw any of this before the end of the four years, their full initial investment will not be guaranteed.
This savings bond is still "incredibly popular", says Abbey's Pak Chan, the head of investment marketing.
"It gives people the opportunity to secure a fixed income which is above the current base rate for the next four years," Mr Chan explains.
Investors in this savings bond are exempt from paying starting and basic income rate tax and capital gains tax.
When the savings bond matures and higher taxpayers have to pay tax, they can opt to postpone payment.
Savings bond offer launched by Abbey
Savings bond offer launched by Abbey
Tue, 15 Nov 2005
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