Abbey launches new multi currency capital guaranteed account

Abbey International has launched a new multi currency capital guaranteed account split equally between a basket of four leading global stock indices on half of the investment and guaranteed fixed income on the remaining portion.

Available in three currencies, sterling, euro or US dollars, the minimum opening investment is £20,000 or euro or US dollar equivalent. A special bonus interest rate of Base Rate plus 0.50% will be paid on all investments made up until the start date of the account on 05 December 2008, with interest added to the original capital investment.

The new Capital Guaranteed World Basket Income and Growth Account links half of a client’s investment to the average growth across a weighted basket consisting of FTSE 100, DJ Euro Stoxx 50, S&P 500 and the Nikkei 225 indices whilst the balance is invested in a fixed deposit account to generate annual income in sterling, euros or US dollars. Annual income levels for the cash segment are 7.50% gross/AER on sterling deposits, 6.0% gross AER on euro deposits and 5% gross/AER on US dollar deposits. Returns on the equity index segment of the product are calculated on the basis of 50% of the growth of the basket of four weighted indices and paid on maturity of the account after five years.

Jane Matthews, Head of Marketing & Business Development at Abbey International said, “Our new capital guaranteed account offers investors an attractive mix of full protection of their initial investment, a high fixed rate of interest paid annually and the possibility to achieve further growth if the basket of global indices grows during the five year period of the product. The current savings market is certainly a difficult one for many clients with share price volatility high and Base Rates generally on hold or quite likely to be cut. Our new account meets these challenges and has the backing of one of the ten largest banks in the world by market capitalisation.”

Offering a balance of both capital protection and income, the account is likely to prove popular with retired and careful investors alike. Retired investors are likely to welcome the high fixed annual income, whilst the element of capital protection will appeal to those following a more cautious investment strategy.

Jane Matthews ends, “With inflation now an issue for many, it is vital that savers look to products which aim to grow their capital in real terms. Stock markets have traditionally delivered real growth over the long term, so with markets generally significantly off their peaks, this account provides for the possibility to deliver real growth over its five year term.”

For further information, visit abbeyinternational.com