Abbey bond with monthly income facility 'set to appeal'

Abbey Savings

Type: One-year bond.

Description: Abbey Savings has launched a one-year savings account for customers looking for a guaranteed return on an amount of money they can lock away for one year.

Conditions: This is a strictly limited offer and will be subject to availability. For annual rates, for savings from £1 to £29,999 the rate stands at 6.35 a year, or 5.08 per cent AER. For savings from £30,000 to £2m, the rate comes in at 6.75 per cent, or 5.4 per cent AER. For monthly rates, for savings from £1 to £29,999, the rate stands at 6.17 per cent, or 4.94 per cent AER. For savings from £30,000 to £2m, the rate comes in at 6.55 per cent, or 5.24 per cent AER.

Contact: 0800 234 6065

Verdict: With a rate that is only 6.35 per cent for investments up to £29,999 and 6.75 per cent for investments up to £2m, this can be bettered by Bradford & Bingley plc at 7 per cent for a one, two, or three year fixed rate bond for example. Or by the Post Office with an offering paying 7.05 per cent, in comparison. However, this Abbey investment will appeal, especially with the monthly income facility, albeit with a slightly reduced interest rate of 6.17 per cent for investments up to £29,999; and 6.55 per cent for investments up to 6.55 per cent.

Rating: 3/5