Abbey launches new bond

07 October 2005
Abbey is offering its popular Guaranteed Income Bond (GIB) to customers for a fifth time.

The bond, which requires a minimum investment of £5,000, offers a fixed income of 3.68 per cent per annum and a guaranteed capital return after four years.

Head of Investments Marketing at Abbey, Pak Chan, said: "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.

"With the potential for interest rates to fall further, the Guaranteed Income Bond gives people the opportunity to secure a fixed income which, for the annual income option, is above the current base rate for the next four years."

The bond is a limited edition product and is available until 8th of November unless is it is sold out.

However, financial advisors recommend that people should not become locked in financial plans that are not suitable for their situation and should think carefully before investing in a bond.

Research and Investment Manager at John Scott & Partners, Patrick Connolly, told "There is no dividend income as there would be from investing directly in shares.

"There is no flexibility - you cannot move your money around and you may be pushed out at the wrong time.

"And they are not tax efficient. Most of them are taxed just like a bank account."

To read more about Bonds, click here.

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