Abbey unveils new investment plan

A new guaranteed options plan has been launched by the high street bank, Abbey which offers customers two investment options based on a minimum starting capital of £3,000 over one year.

The new plan is only available through Abbey's intermediary distribution arm, Abbey for Intermediaries, and any potential investors are strongly advised to discuss the scheme with an independent financial advisor.

Both options will be guaranteed to provide capital repayment at maturity at the end of March 2006.

Abbey's first option offers guaranteed growth of four per cent, meaning that it is potentially equivalent to 6.66 per cent gross for higher-rate taxpayers.

The second option from Abbey provides the potential for a 20 per cent growth in investment, as long as the FTSE 100 index does not gain or loss ten per cent during the one-year investment term.