Investment Bond

INVESTMENT BOND

Our Investment Bond is designed for customers who wish to invest money in a product which invests in a range of assets and operates on a With-Profits basis, with a view to generating capital growth over a 5 to 10 year period. Customers should consider making use of any investment tax allowances (e.g. ISA allowance) available to them before investing in this product.

It is also for customers who understand that the value of investments may fall as well as rise and they are content to take a low to medium risk when investing their money.

Applicants must be UK residents at the time of the application.

There is no minimum fixed term, but the product is designed to be held for 5 to 10 years to allow the possibility of growth through investments. With this Bond, there is the potential for annual and final bonuses, but it is not guaranteed they will always be awarded.

There is a guaranteed lump sum death benefit which will return at least 101% of your original investment.

The age limit for the Investment Bond is 70.

Invest a Lump Sum of £500 up to £50,000
Tax Efficient for basic rate tax payers
A personalised service
Simple to join online now
150 year history

How much can I invest?

You can invest between £500 and £50,000 in the Investment Bond. Your total investment will be split into £500 Bonds and a Bond for the remaining balance to provide you with greater flexibility as and when you wish to withdraw your Bonds.

Where will my money be invested?

Your money will be invested in the Society’s With-Profits Fund. The Fund invests in a range of asset classes, including government gilts, corporate bonds, UK and overseas equities, collective investment funds, cash deposits and property.

How are bonuses calculated and paid?

The Society’s With-Profits Fund is invested in a mixture of diversified assets, the returns from which can vary from year to year. Each year our Management Committee, having received advice from the With-Profits Actuary, assesses the past and projected future performance of the With-Profits Fund and may declare an annual bonus, which is added to your Bond value.

Annual bonuses are set at levels that the Management Committee considers to be sustainable in the long term, having regard to past investment performance, expectations of future investment performance, expenses and the Society’s solvency position. The rate of bonus is not guaranteed and can go up or down each year and could be zero.

There is also the possibility of a final bonus being added to the value of your Bond when you withdraw it or in the event of death. Past investment performance is not an indication of future performance.

What is the tax position of the Bond?

The Society pays tax on the fund your money is invested in and tax at the basic rate may be treated as paid on any taxable gain. This means that there is likely to be no further tax to pay unless you are taxable at the higher or additional rate. All references to taxation are based on the Society’s understanding of current tax legislation and practice, which may change in the future. Tax treatment depends on your individual circumstances and may be subject to change in the future. Further details on tax are provided in the Investment Bond Terms and Conditions document.