Abbey issues 'best ever' guaranteed income bond

Wednesday, 13 June 2007 12:00

Abbey has released its best ever paying guaranteed fixed income bond, offering 4.88 per cent net (6.10 per cent gross equivalent) a year.

The bond is in effect a single premium life insurance plan, which guarantees a fixed income at a competitive rate and the full return of capital, as long as the bond is held for the full four-year investment term.

The minimum investment is £5,000 – the closing date for applications July 10th 2007 or earlier if sold out.

“The guaranteed income bond has always been a popular product and we are delighted to be able to offer our highest ever rate,” said Reza Attar-Zadeh, head of savings and investments at Abbey.

“We expect this new launch to appeal to people looking for capital security at maturity and the certainty of a regular income for the next four years.”

The Abbey guaranteed income bond guarantees a fixed income of 4.88 per cent net (6.10 per cent gross) if income is taken annually, or 4.80 per cent net (6.00 per centgross) if taken monthly or quarterly.

Income is paid net of basic rate income tax, which is not reclaimable by non-taxpayers and starting rate taxpayers. The gross equivalent rate is provided for illustrative purposes only and is never paid by the guaranteed income bond.

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