Abbey launches latest guaranteed growth plan

Abbey has launched a new Guaranteed Growth Plan (Issue 12) linked to the FTSE 100 Index. It offers a guaranteed minimum return of eight per cent over a three-year period or 20 per cent over a 5.5-year term. It also offers the potential for higher returns depending on the performance of the FTSE 100 Index. The maximum return at maturity is 50 per cent of the averaged growth in the Index over the last six months of the term.

The Plan is 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).

Reza Attar-Zadeh, Head of Savings and Investments at Abbey, said “Given the ups and downs of the stock market in recent times, it’s no surprise that people thinking about taking out investments sometimes shy away from doing so for fear of seeing a loss to their hard-earned savings. However, this means that too many people miss out on potentially good returns on their money.

“The Guaranteed Growth Plan is the latest in Abbey’s series of products which offer customers a capital secure way of investing in the stock market and generating the possibility of a return in excess of current savings rates.”

Minimum investment in the Plan is £1,500. The Plan is available until 5 February 2007.