New investment bonds announced

Friday, October 7, 2005

Abbey National has announced the launch of a new guaranteed income bond (GIB).

The investment opportunity has a fixed gross interest rate of 4.60 per cent if paid annually, or 4.50 per cent if interest is taken monthly or quarterly.

Investment in the GIB can be any amount between £5,000 and £250,000 and there is a guaranteed return of capital if the money remains in the bond for four years.

"The guaranteed income bond continues to be incredibly popular and from our conversations with customers seems ideal for retired people looking to draw income from their savings," said Pak Chan, Abbey National's head of investments marketing.

The GIB joins Abbey's high income bond and multi manager in the range of investment opportunities on offer from the company.

It was announced on the same day that Alliance and Leicester is also offering a new investment bond opportunity, this time teaming up with Legal and General to offer a balanced savings and investment plan.

The bond is over a five-year period with 4.42 per cent gross interest for the savings account, which also benefits from a bonus at the end of the fixed first year.