Abbey launches super ISA offering 8% interest
Tuesday, 06 Mar 2007 14:11
Abbey has launched a new "super ISA" paying 8% interest tax free until May 1st 2008.
The super ISA is a mini cash ISA that offers 8% AER interest tax-free if customers invest an equal amount or more into Abbey’s Guaranteed Growth Plan.
This allows instant access to money placed in the super ISA, while deposits in the Guaranteed Growth Plan are invested for the longer term (three or five-and-half years).
The minimum investment in the new super ISA is £500, as long as another £500 is placed in the Guaranteed Growth Plan.
"This product has been designed to help customers save for their future in a tax efficient manner at great rates," said Reza Attar-Zadeh, head of savings at Abbey.
"This compelling product combination pays eight per cent on instant access tax-free savings and offers customers the potential for higher returns through investing in the stock market, whilst guaranteeing their capital and a minimum return.
"The cash ISA element is free from income tax, while the GGP element is taxed under Capital Gains Tax (CGT) rules. Less than one per cent of the population utilise their CGT allowance, currently at £8,800.
"Customers wary of the stock market should consider this product as a way to take their first step into equity investing. The product could also be considered for the low risk segment of more sophisticated investor portfolios."