Abbey offers Guaranteed Income Bond with market-leading rate

The new issue of the Guaranteed Income Bond offered by Abbey (GIB Issue 19) has a rate of 4.32 per cent p.a. A single premium life insurance plan, it guarantees a fixed income at a competitive rate and the full return of capital, provided the bond is held for the full four-year term of the investment.

Pak Chan, Abbey’s Head of Marketing for Investments & Long Term Savings, said, "Abbey remains committed to bring some of the best products and services to savers. Customer demand has been high in 2006 for the Guaranteed Income Bond and 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 GIB guarantees a fixed income of 4.32 per cent p.a. net (5.40per cent p.a. gross equivalent) if income is taken annually, or 4.24 per cent p.a. net (5.30 per cent p.a. gross equivalent) if taken monthly or quarterly.

Income from the GIB 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.

With a minimum investment of £5,000, people can invest in the GIB by visiting their local Abbey branch. The closing date for applications is 9 January 2006 or earlier if sold out. The bond is designed for investors who can commit to a four-year term. Cashing in the bond before the end of the four-year term may mean getting back less than was paid in.