Abbey bond offers 'guaranteed' income

Monday, November 14, 2005

Abbey National has launched a new Guaranteed Income Bond (GIB), which offers a guaranteed income and capital return at the end of the bond.

The sixth GIB offered by Abbey requires a minimum investment of £5,000, and offers a guaranteed fixed income at the rate of 3.80 per cent p.a. net (4.75 per cent p.a. gross) providing interest is paid annually.

"The Guaranteed Income Bond continues to be incredibly popular," said Pak Chan, head of investments marketing at Abbey.

"It gives people the opportunity to secure a fixed income which is above the current base rate for the next four years."

The bond offered by Abbey follows Birmingham Midshires' announcement last week that it was to extend it's offering of investment bonds.

Four and five year bonds with an interest of 5.10 per cent gross/AER have been added to their portfolio, meaning there are plenty of options for savers on the market.

Abbey says their new GIB is the only life bond available on the high street that offers a guaranteed income to customers.
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