Abbey launches new investment bond

Abbey has launched a new guaranteed income bond (GIB), which offers a fixed income of 4.4 per cent net per year.

A guaranteed capital return after four years is incorporated into the product, which also allows monthly or quarterly income payment options.

If payments are taken on a monthly or quarterly basis, a rate of 4.32 per cent will apply. All income from the GIB is paid net of basic rate income tax.

Pak Chan, Abbey’s head of investments marketing, said: "The guaranteed income bond remains a highly popular product, so in response to customer demand, this new issue has the highest rate ever.

"This new bond reaffirms Abbey’s commitment to bring some of the best products and services to savers."

A minimum investment of £5,000 is required to open the Abbey GIB, which is available to customers at Abbey branches.