Abbey launches four-year guaranteed bond

16 March 2006
Abbey has introduced a new Guaranteed Income Bond (GIB) for investors looking for a secure return.

The bond will guarantee an annual fixed income for four years - at 3.68 per cent if calculated on an annual basis, but reduced to 3.6 per cent for quarterly or monthly income.

The minimum investment in the bond is £5,000 net of basic rate income tax, but this is not reclaimable by taxpayers on the starting rate.

Investors are guaranteed to receive a full return of capital if they remain with the bond for the duration of the four-year term. If the bond is cashed in before this time, investors could get less than they actually paid in.

Pak Chan, head of investments marketing at Abbey, said: "We expect this new Guaranteed Income Bond launch to appeal to people looking for capital security at maturity."

The deadline for interested applicants is April 11th, but investments may sell out before that date.

To read more about investment bonds, click here.

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