Abbey launches 5.5% guaranteed income bond

Monday, 13 November 2006 12:00

Abbey has launched a guaranteed fixed-income savings bond paying 5.5% gross AER interest (4.4% per annum net).

The Abbey savings bond guarantees capital return after four years, and comes with monthly, quarterly or annual income payment options.

The minimum investment for the bond is £5,000, the closing date for applications is December 5th 2006 or earlier if sold out.

People cashing in the bond before the end of the four-year term may get back less than they paid in.

If people take the monthly or quarterly income model the net interest drops to 4.32% a year (5.40% gross equivalent).

Income from the Abbey has launched a guaranteed fixed-income savings bond is paid net of basic rate income tax, which is not reclaimable by non-taxpayers and starting rate taxpayers.

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