Abbey launches new super bond

Abbey has launched a new Super Bond, a limited edition fixed-rate bond offering 8.1 per cent if customers put an equal amount or more into Abbey’s tax-efficient Guaranteed Growth Plan, or other growth investment.

Following the success of its recent Super ISA and research that customers do not feel they are saving enough for their futures (72 per cent of consumers don’t believe they’re saving enough), the product has been designed both to allow a great one year savings bond rate of 8.1% on money placed in the Super Bond while 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.

Super Bond – Highlights

8.1 per cent AER for one year, when the fund matures.

Interest is calculated daily, and there is no interest penalty if you need to close the bond early.

Guaranteed Growth Plan (GGP)

Capital guaranteed with a guaranteed minimum return of 9 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 for customers that do not utilise their annual CGT allowance (annual CGT allowance is currently £9,200).
Minimum £1,500 investment.

Abbey’s investment range

All on-sale growth based investments also qualify for the Super Bond. This includes our Multi Manager & Inscape range.

Reza Attar-Zadeh, Head of Savings and Investments at Abbey, said: “This product has been designed to help customers save for their future in a tax efficient manner at great rates. It pays 8.1 cent on the one-year Super Bond and offers customers the potential for higher returns through investing in the stock market, while guaranteeing their capital and a minimum return. The 8.1 per cent mirrors that on our recent Super ISA, which continues to be available.”

“This product is an ideal way for customers to diversify their savings and for those wary of the stock market to take their first step into investing.”