Abbey Isa 'guarantees returns'

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Abbey Isa 'guarantees returns'

Wed 28th Mar 2007

Abbey is championing its tax-free savings vehicle which will provide customers with a guaranteed return after a fixed term – the Super Isa.

The group has identified how such a package could be particularly useful when the stocks and shares market is fluctuating, with there having been a 7.3 per cent variance between February 19th and March 14th.

The Abbey cash mini-Isa is offering a competitive rate of 8.1 per cent until May 1st 2008 if customers put an equal amount or more into the guaranteed savings plan.

With the group's guaranteed growth plan, savings will be invested over a long-term period of between three and 5.5 years.

Those people who want their savings to be in a shorter term vehicle could opt for the Abbey Direct Isa, offering a rate of up to 5.75 per cent.

Reza Attar-Zadeh, head of savings and investments at Abbey, said: "Abbey's Super Isa offering is protected against equity volatility.

"The cash mini Isa element offers 8.1 per cent over one year and the guaranteed growth plan offers a minimum nine per cent return over three years, or 50 per cent of the growth of the FTSE 100 - whichever is higher," he added.

With the FTSE being five per cent lower than it was in 2000, Mr Attar-Zadeh said the "benefit of such certainty of return is enormous".

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