Abbey launches new Super ISA

Abbey will be launching a new Super ISA (Issue 2) with a market leading 10 per cent AER tax-free rate from 3 March 2008. The Super ISA is a cash ISA and is available if customers put an equal amount or more into Abbey’s tax efficient Guaranteed Growth Plan or any other qualifying investment.

The Super ISA also allows transfers-in so that savers can take advantage of getting the best rate for all their ISAs. This coupled with instant access provides savers with a highly attractive tax-efficient solution. Deposits in the Guaranteed Growth Plan are invested for the longer term offering a minimum return of either six per cent (on 3.5 years) or 18 per cent (six years), plus capital is guaranteed regardless of whatever happens to the stockmarket.

The Guaranteed Growth plan also offers the potential for capital growth through offering savers the greater of either the minimum guaranteed return or 50 per cent of any growth of the FTSE 100 index. This approach is particularly suitable for those who wish to invest in the stock market, but are concerned about potential downside or market volatility.

Abbey has a strong track record in structured products, winning the Moneyfacts Best Structured Product Provider Award 2007.

For customers who do not wish to save for the longer term, Abbey will also be launching a Direct ISA (issue 2) on the 3rd March 2008 which offers a competitive cash ISA rate of 6.25 per cent from £1 with instant access.

Reza Attar-Zadeh, Director of Savings and Investments at Abbey, said: “Super ISA offers the compelling combination of a strong instant access cash ISA rate coupled with a tax efficient investment, guaranteed against falling markets. It also offers the potential for higher returns based on any growth of the FTSE 100.

“Given current market uncertainty and volatility, we think this product is particularly attractive as it offers the potential for capital growth yet provides capital protection against a further market down-turn.”

Super ISA – Highlights

10% per cent AER tax-free for 13 months
Available when you deposit the same amount or more in a Guaranteed Growth Plan
Effective rate of 12.5 per cent for basic rate tax payers or 16.7 per cent for higher rate tax payers
Available to new and existing customers. Free transfer-in service of ISAs
Account offers instant access by telephone, post, internet and cash machine

Guaranteed Growth Plan (GGP)

Capital guaranteed with a minimum return of six per cent over a 3.5 year period or 18 per cent over a six-year term
Potential of higher returns, based on growth of the FTSE 100 index.
Available as an ISA
Minimum £1500 investment

Customers can apply for the Super ISA at abbey.com.