Abbey National News

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Abbey National has been on the news from the very beginning of 2007 following the launch of many attractive schemes. In the stuffy financial sphere where dealers are continuously raising the rates, Abbey National’s new saving plans have brought in some fresh air.

The first scheme introduced by Abbey National was a new product, a 50+Saver plan. This new product aims to capture the above 50 age group who reportedly control sixty percent of total savings and almost 40 percent of the entire consumer demand is generated by them. Research conducted by Abbey National reveal that around 4.5 million people above 55 have not yet planned their retirement and a million people above 55 have to work well beyond the retirement age. Moreover, about three quarters of people within the age group of 45 to 54 have shown no initiative to start a pension plan.  According to Mr. Attar-Zadeh, Abbey National’s 50+ Saver plan hopes to propel investors towards a “culture of savings at this crucial time for those approaching retirement”.

The scheme offers an unparalleled 5.8% interest rates and provides customers with an ATM cashcard. An investment of £1 is enough to open the account. However, the interest rate varies with the deposited account. For amounts from £1 to £49,999 the interest offered is 5.25%, which increases with the amount. For 5.8% interest, the customer should have over £200,000 in their account.

Another scheme introduced by the Abbey National is the Isa Competitive. Launched on May first, the scheme offers an incredible 8.1% interest rate on investment for a whole financial year. The Abbey National group claims that this interest rate is 1.6% more than the current highest in the market. The new interest offer includes both new and existing customers and would last till first May 2008. A minimum investment of £500 in the ‘guaranteed growth plan’ is required to avail this fantastic opportunity. Furthermore the customers are not charged with any withdrawal fees. The Abbey Isa interests are calculated on daily basis.

Another interesting scheme is the Abbey Mortgage no up-front cost mortgage package. Survey reports suggest that annually around £28 billion was spent in the year 2006 in Britain for moving home. This is an average of £16,000 per family. With the new Abbey Mortgage package that excludes all up-front costs related with the legal fees, sale and purchase of property. This is a very attractive scheme for families planning to move at least three or four times in their lifetime.