A&L and Abbey launches new guaranteed investment products

This week Alliance & Leicester and Abbey are launching a new range of guaranteed investment products offering the security of a capital guarantee and minimum return, providing they are held for the full term.

These offers will be available until 13 June 2009, or earlier if sold out.

The Guaranteed Growth Plan (Issue 22) is available for a 5.5 year term. Customers will have their capital and a minimum return of 10% guaranteed and can choose either the: ‘stock market' option (receiving half the growth of the FTSE 100 index up to a maximum of 25%) or ‘house price' option (receiving half the growth in the Halifax House Price index - with no maximum).

The Guaranteed Growth Plan (Issue 22) - house price option is also available over a 3.75 year term with a capital and minimum return of 3% guaranteed and receiving half the growth in the Halifax House Price index.

The Guaranteed Capital Plus (Issue 9), is available for a 5.5 year term on a minimum investment of £1,500. Customers will receive a 30% return if the FTSE 100 Index has increased at the end of the term, by any amount, even by one point, compared to the opening index level, or a guaranteed minimum return of 0.50%, if the FTSE 100 has decreased or stayed the same.

There are two ways to invest in the plans:

Outside an ISA - Annual Capital Gains Tax allowance can be used to mitigate any potential liability (currently £10,100 for 2009/10)

Within an ISA (only available for the 5.5 year options) - under current tax legislation, returns will be free of Income Tax and Capital Gains Tax.

The product will be of interest to customers who are willing to keep their money invested for the full 3.75 or 5.5 year term and can also be used as the investment element of the Abbey and Alliance & Leicester Super Saver and Super Direct ISA.

Pak Chan, Head of Investments, said: "For savers looking for exposure to equities or the UK housing market, but without putting their capital at risk, The Guaranteed Growth Plan and Guaranteed Capital Plus could be a great choice, especially given the recent falls in both areas. With capital protection provided if held for the full term, and the backing of one the world largest banks, Santander, these products offer peace of mind from product to provider".

These offers are only available for a limited time and investors who wish to apply can visit an Abbey or Alliance & Leicester branch to book an appointment with a Financial Advisor.