Following the sell-out of three Guaranteed Income Bonds (GIB) earlier this year, Abbey has announced the fourth issue of the popular investment.

With a guaranteed fixed annual interest rate of 3.60 per cent net (4.50 per cent gross equivalent), the investment is a sound option for those who want to be saving money in a low-risk investment.

The interest rate is higher than a number of other savings bonds currently available. In addition to this, the GIB offers both protection of capital and a reliable income over the four-year period.

The interest rate is 3.52 per cent if the investor chooses to receive the income from their investment on a monthly basis.

This makes the savings bond a popular choice for retired people, commented Pak Chan, Abbey’s head of investments marketing.

The Guaranteed Income Bond has proved to be incredibly popular in its previous three issues. We have had many conversations with customers on their savings needs, and this product seems ideal for retired people looking to draw income from their savings , Mr Chan said.

With interest rates having fallen and the potential for them to fall further, the Guaranteed Income Bond gives people the opportunity to secure a fixed income at the equivalent of the current base rate for the next four years.