Abbey has launched the fifth savings bond of its Guaranteed Income Bond (GIB) range.
The bank said that its new savings bond will pay a savings interest rate of 3.68 per cent net annually, or 3.60 per cent if it is taken monthly. The savings bond guarantees a fixed income for at four years and offers capital protection.
The GIB requires a £5,000 minimum investment. Customers can take income from the savings bond annually, quarterly or monthly. The bank warns savers that the product may return less money than they put in if they withdraw it before the four-year fixed period.
Pak Chan, head of investments marketing at Abbey, said, "The Guaranteed Income Bond continues to be incredibly popular and from our conversations with customers seems ideal for retired people looking to draw income from their savings.
"With the potential for interest rates to fall further, the Guaranteed Income Bond gives people the opportunity to secure a fixed income which, for the annual income option, is above the current base rate for the next four years."
Meanwhile, those saving money breathed a sigh of relief yesterday as the Bank of England decided not to lower interest rates.
The range of services on offer at Abbey 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 UK's sixth largest bank by assets and the second largest provider of mortgages and savings in the UK.
Abbey launches new savings bond
Financial Services > Savings > Savings and Investments News
Abbey launches new savings bond
Fri, 07 Oct 2005
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