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.
