Safety Plus Growth from Abbey
21 July 2004
Abbey has launched the latest version of its Safety Plus Growth, which guarantees investors at least their original sum back at the end of the investment period.
The 19th issue of Abbey's plan provides capital protection, so customers are assured that their investment is safe, with the added possibility of potential growth during the course of the investment.
It is available as an ISA or a Direct Share Investment Plan and the term of investment is five and a half years.
It aims to return investors' capital in full plus a minimum of 23 per cent. The potential for a maximum return is capped at 44 per cent.
Abbey's customer director, Angus Porter, said, "This new investment will suit those wanting to put their money into today's stock market but with the safety net of capital protection."
He added: "The Safety Plus Growth investment is designed to give the benefit of potential stock market growth but with less risk than investing directly in stocks and shares."
An added bonus of the scheme having an offshore structure is that returns, even outside an ISA wrapper, are income tax-free.
They are liable for capital gains, however, given most people do not use their capital gains tax allowance (currently £8,200 pa), they will not incur any capital gains tax either, making Safety Plus Growth's returns virtually tax-free to most customers even outside of an ISA.
The minimum total investment for Safety Plus Growth (Issue 19) is £1,500. But it is available on a limited-time, first come, first served basis, so is only on sale until September 21st 2004, unless sold out earlier.