Abbey investment launched

A new Abbey investment has been launched in the form of a guaranteed income bond.

The bond guarantees investors a paying a fixed 4.10 per annum net with the full return of the client's capital after the four-year term of the investment expires.

Income is reduced to four per cent per annum if taken monthly or quarterly. The income from the GIB is paid net of basic rate income tax, which is not reclaimable by non-taxpayers and starting rate taxpayers.

The minimum investment is £5,000 and the maximum is £250,000.

Pak Chan, Abbey's head of investments marketing, said: "The Guaranteed Income Bond is ideal for people who are retired and looking to draw income from their savings.

"Drawing from our conversations with such customers, it provides them with the two key things they are looking for - capital security and surety of a known regular income.

"Abbey's Guaranteed Income Bond not only provides both of these but also one of the best rates on the market."

The closing date for applications is July 5th.