Abbey targets short-term savings with new investments option

Wed, 28 Feb 2007

People looking to boost their short-term savings will increasingly turn to investments this year, Abbey has indicated as it announces the launch of a new savings bond.

Investors aiming to start saving money may be interested to know that the financial services provider is now offering a two-year bond that will pay four-fifths of any upturn in the FTSE 100 share index, averaged out over the preceding six months.

And savers concerned about a possible future downturn in the London Stock Exchange may be reassured to know that capital is guaranteed with the savings bond .

Commenting, Gary Dale, head of intermediary business development at Abbey Financial Markets, explained that not everybody who wanted to boost their savings in the next few years would prefer to utilise cash savings vehicles.

"Short-term structured deposits linked to equity markets with capital guarantees are an area of the market that we expect to grow over the coming months," he said.

Alternatively, people looking for a different investments option may wish to consider investing directly in the stock market.

However, unlike capital-guaranteed savings bonds, investors cannot be certain that the money they initially invested will be safely returned when they ultimately decide to leave the stock market.

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