A four-year single premium life insurance plan has been launched by Abbey .

The eighth issue of the guaranteed income bond (GIB) offers protection of capital and income over the term of the investment.

Income can be taken yearly or monthly. Investors opting for the annual income version will receive 3.8 per cent a year, whereas the monthly option will receive an income rate that is 0.08 per cent lower.

This income will be paid net of basic rate income tax , which means that non-taxpayers and those paying starting rate tax will not be able to reclaim tax.

Abbey's head of investments , Pak Chan, says the GIB has proved incredible popular.

It provides customers with capital security at maturity and the certainty of a regular income for the next four years, Mr Chan explains.

To open the GIB, a minimum investment of £5,000 is required and this needs to be deposited before February 7th, although it may close earlier if the GIB is sold out.

The life insurance plan can be opened by visiting a branch of the bank or by phoning to book an appointment.