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Abbey Savings

Type: One-year savings account

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

Conditions: Interest is paid monthly or annually. The fixed rate bond offers annual rates of 6.35 per cent to 5.08 per cent for savings between £1000-£29,999, and rates of 6.75 per cent to 5.40 per cent for savings between £30,000-£2m.

The monthly rates include 6.17 per cent to 4.94 per cent for savings between £1000-£29,999 and 6.55 per cent to 5.24 per cent for savings between £30,000-£2m.

The bonds will mature on 1 August 2009.

Contact: 0800 234 6065.

Verdict: It should be noted that higher rate tax payers will achieve a lower net rate. But the product is fairly good, when compared with what the market has to offer. It has a relatively low benchmark entry level of £30,000, or up to £30,000 with a lower rate of 6.35 per cent. The monthly income facility of 6.55 per cent or 6.17 per cent is equally not bad when considering the volatility of the equity markets. One assumes that no withdrawals will be allowed, but then that is why such a high rate of interest is being paid. This product would certainly be recommended for clients to put in their portfolios, especially if income is needed.

Rating: 4/5