Abbey and Alliance & Leicester: New investments

Thursday, 03 September 2009 12:00

Abbey and Alliance & Leicester are preparing to launch a new investment range which promises returns of at least seven per cent.

The banks' new guaranteed investment products are designed for savers with a minimum of £1,500 to invest and who want security of capital and a minimum return.

Among the new range are three Guaranteed Growth Plans. These include an investment which lasts for 3.75 years, promises a minimum of seven per cent return but has the potential to earn up to 50 per cent of any growth in the Halifax House Price Index.

There is a 5.5 year version of the plan, which offers a minimum of 14 per cent interest and a maximum of 75 per cent growth in the index.

Or investors can choose the stock market option which tracks the growth of the FTSE 100 Index. It promises a minimum return of 14 per cent but allows savers the potential to earn up to 50 per cent of the growth of the FTSE.

There are also Guaranteed Capital Plus plans available which offer a 0.25 per cent minimum return and potential to earn money on the growth of the FTSE 100.

Pat Chan, head of investments for the banks, said: "Our latest range offers savers the chance to dip their toe into equities without any risk to their capital, and with the chance of potentially greater returns than they may get on cash savings in today's low interest rate environment."

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