Abbey's Super ISA keeps going

From today, Abbey's Super ISA stand alone as the only ISA product in the market offering 8.1 per cent when you invest the same amount or more in the Guaranteed Growth Plan. This is 1.6 per cent higher than the next highest rate available on the market.

Reza Attar-Zadeh, Head of Savings and Investments at Abbey, said: "Abbey is committed to encouraging a culture of saving. Investors may wish to take advantage of their tax free ISA allowance throughout the year, so we will continue to offer our market leading Super ISA deal throughout the year.

"We have received very positive feedback from our customers on the Super ISA. We spent a large amount of time researching this product, and really getting to understand our customers needs."

Abbey has developed the Super ISA to help customers build their savings in a tax-efficient way, while offering certainty of return. The product has been designed both to allow instant access to money placed in the Super ISA offering 8.1 per cent interest, whilst deposits in the Guaranteed Growth Plan are invested for the longer term (three or 5.5 years) offering guarantees both on the money deposited and a minimum return, if the money is left for the full term.

The product allows transfers in of existing ISA balances customers may already hold.

Super ISA - Highlights

8.1 per cent AER until 1 May 2008, when the Super ISA reverts to Abbey's Direct ISA
Direct ISA offers a highly competitive rate (Currently 5.5 per cent to 5.75 per cent, including a 0.5 per cent bonus until 1 May 2008)
Available to new and existing customers. Free transfer service of cash mini ISAs from other providers
Account offers instant access by telephone, post, internet and cash machine
Interest is calculated daily, and there is no penalty for withdrawal
Minimum investment of £500
Effective rate of 10 per cent for basic rate tax payers or 13.33 per cent for higher rate tax payers

Guaranteed Growth Plan (GGP)

Minimum £500 investment to qualify for Super ISA
Capital guaranteed with a guaranteed minimum return of nine per cent over a three-year period or 23 per cent over a 5.5-year term
Potentially greater returns, depending on the performance of the FTSE 100 index

Subject to Capital Gains Tax regime, so is therefore more tax efficient than bonds that attract income tax (annual CGT allowance is currently £8,800)