Fifth issue of GIB from Abbey is launched

Abbey has come up with its fifth Guaranteed Income Bond (GIB) that over the next four years will offer security of both capital and consistent income.

A net fixed rate of income has been set at 3.68 per cent, with the gross equivalent being 4.60 per cent, for customers who receive their income annually.

The income rate is 3.60 per cent, 4.50 per cent gross, for people who receive their income monthly or quarterly, for both options the net amount is taken after the deduction of basic rate income tax.

Customers will get back all of the money initially invested if they hold the bond for the full four years, but they may receive less than their initial investment if they cash it in before the four year period is over.

Pak Chan, Abbey's head of investments marketing, said: "The Guaranteed Income Bond continues to be incredibly popular and from our conversations with customers seems ideal for retired people looking to draw income from their savings.

"With the potential for interest rates to fall further, the Guaranteed Income Bond gives people the opportunity to secure a fixed income which, for the annual income option, is above the current base rate for the next four years."

To purchase a bond, customers must invest a minimum of £5,000 and they need to buy one before November 8th 2005, or earlier if sold out.