New Abbey Guaranteed Income Bond launched

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New Abbey Guaranteed Income Bond launched

Wed 19th Apr 2006

The eleventh Abbey Guaranteed Income Bond has been announced today, with a guaranteed fixed income of 3.84 per cent net, 4.8 per cent gross, per year.

A guarantee of a fixed income over four years and the full return of capital is given, provided that the bond is held for a full four-year term.

Abbey claims that the offer is the only single premium life insurance plan available on the high street to offer such an assurance of fixed income.

Interest on the Abbey Guaranteed Income Bond will be paid at 3.84 per cent net if received on an annual basis, or 3.76 per cent if taken monthly or quarterly. Payments will always be made net of income tax, which is not reclaimable by non-taxpayers.

"Our new Guaranteed Income Bond is expected to appeal to people looking for capital security at maturity and the certainty of a regular income for the next four years," said Pak Chan, head of investments marketing for Abbey.

The plan has a minimum required input of £5,000 and allows a maximum investment of £250,000.