Abbey, a wholly owned subsidiary of Banco Santander, has launched its new range of guaranteed investment products, Guaranteed Growth Plan and Guaranteed Capital Plus.
Guaranteed Growth Plan offers a minimum return of 6% over 3.5 years and 18% over six years and 50% participation in the FTSE 100 Index, while Guaranteed Capital Plus, provides an 18% return after 3.5 years and a 40% return after six years if the FTSE 100 Index goes up by any amount at the end of the term; and a guaranteed minimum return of 2% for both terms.
Abbey has claimed that the products are tax efficient and returns can be free of income and capital gains tax and are available until April 22, 2008 or earlier if sold out. The minimum investment of the products is GBP1,500.
Reza Attar-Zadeh, head of savings and investments division at Abbey, said: Given the volatility of the stock market since the start of the year, some people thinking about taking out investments may be cautious. Abbey’s structured product range allows investors to benefit from any stock market growth without putting their capital at risk.