Abbey has launched a new guaranteed investment bond (GIB) that offers capital protection and income over a period of four years.
The single premium life insurance plan offers a fixed income at a "competitive" interest rate of 3.68 per cent a year.
Should interest be taken every month, the gross interest rate will be 0.12 per cent lower at 3.56 per cent. Interest can also be received every three months.
The income will be paid net of basic rate income tax, which cannot be reclaimed by those not paying tax or starting rate taxpayers.
Bondholders will receive their total initial investment at the end of the four-year term.
A minimum investment of £5,000 is required to open the investment bond, but those planning to open one should do so before March 7th 2006.
Should the investment bond be sold out before this closing date, Abbey will not accept more new investments.
The GIB has been "incredibly popular" according to the head of investments marketing at Abbey, Pak Chan.
"It provides customers with capital security at maturity and the certainty of a regular income for the next four years," he adds.
Investment bond launched by Abbey
Investments Quote Line
0845 108 0505
Financial Services > Investments > Investments News
Investment bond launched by Abbey
Tue, 14 Feb 2006
| investments news |
|---|
| Pensions are not the only investment option - Wed, 01 Sep 2010 |
| SIPP holders want to make their own investment decisions - Fri, 27 Aug 2010 |
| Investment company urges Britons to be sensible selecting a credit card - Wed, 25 Aug 2010 |
| More News |
Investments Newsletter
Monthly investments news, top tips & more.
Investment Advice
Get free investments advice from authorised investments experts.
