Abbey and A&L launch new guaranteed investment products

This week Abbey and Alliance & Leicester have launched their latest range of guaranteed investment products for savers looking for the security of a capital guarantee with a minimum return, providing they are held for the full term. These offers will be available until 3 September 2009, or earlier if sold out.

The Guaranteed Growth Plan (Issue 24) is available for a 5.5 year term on a minimum investment of £1,500. Customers will have their capital and a minimum return of 13 per cent guaranteed and can choose either the: ‘stock market' option or the "house price option". Under the stock market option, the maximum potential return is half the growth of the FTSE 100 index up to a maximum of 40 per cent with six months daily averaging at the end of the term). Under the ‘house price' option, the maximum potential return is 75 per cent of the growth in the Halifax House Price index with seven months averaging over the end of the term - with no maximum).

The Guaranteed Growth Plan (Issue 24) - ‘house price' option is also available over a 3.75 year term with a capital guarantee and minimum return of 7 per cent guaranteed. The maximum potential return is half the growth in the Halifax House Price index with seven months averaging over the end of the term.

The Guaranteed Capital Plus (Issue 11), is available for a 5.5 year term on a minimum investment of £1,500. Customers will receive a 37 per cent return if the FTSE 100 Index has remained the same or increased at the end of the term, compared to the opening index level, or a guaranteed minimum return of 0.50 per cent, if the FTSE 100 Index has decreased. with six month daily averaging over the end of the term.

The Guaranteed Capital Plan (Issue 11) - stock market option is also available over a 3.75 year term on a minimum investment of £1,500. Customers will receive an 18 per cent return if the FTSE 100 Index has remained the same or increased at the end of the term compared to the opening index level, or a guaranteed minimum return of 0.25 per cent if the FTSE 100 Index has decreased with six month daily averaging over the end of the term.

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: "Our new range of guaranteed investments offer competitively priced potential returns for customers looking for some exposure to equities or the House Price Index. With the backing and strength of one of the world's largest banks, Santander, savers can be reassured that the capital guarantee means just that. Offering savers the chance to tip their toe into equities, without the risk to capital, but with the chance of greater returns than they may get on cash savings"

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.