Abbey launches new Guaranteed Capital Plus product

Abbey launches the latest tranche of its range of guaranteed investment products linked to the FTSE 100 with the security of a capital guarantee.

Guaranteed Capital Plus (Issue 3), available for three and a half or six years, and offering:

18 per cent return if the FTSE 100 has increased over 3.5 years, even by one point; or a guaranteed minimum return of two per cent over the period if the FTSE 100 has decreased or stayed the same over the period

40 per cent return if the FTSE 100 has increased over 6 years, even by one point; or a guaranteed minimum return of two per cent if the FTSE 100 has decreased or stayed the same over the period

There are 2 ways to invest in Guaranteed Capital Plus:

Outside an ISA - for the majority of people returns will be free of Capital Gains Tax, (annual Capital Gains Tax allowance is currently £9,600)

Within an ISA - returns will be free of Income and Capital Gains Tax (only available for the 6 year option)

Guaranteed Capital Plus is available from 25 June 2008 until 9 September 2008 or earlier if sold out. Minimum investment is £1,500. The product can be used as the investment element of Abbey's Super range of products, providing a strong combination of income and growth returns.

Reza Attar-Zadeh, Director of Savings and Investments at Abbey, said "Given the volatility of the stock market, many investors are deciding to take a cautious attitude to risk. Abbey's Guaranteed Capital Plus gives investors an exposure to the superior returns available from linking to equity markets without putting their capital at risk. The product is tax efficient and ensures a guaranteed minimum return, regardless of the stock market performance."