• I want flexibility to help me get what I want from my investment

  • The Investment Bond

    A tax efficient investment with flexibility to help you get the most from your existing bond.

    If you're thinking about boosting your retirement plan, or paying for specific life events, you might want to consider topping up your existing bond.

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    Offering built in flexibility to help you:

    • Change your investment choice as and when your needs change.
    • Make additional investments of £1,000 or more - at any time.
    • Access your money to provide a regular income or to fund future expenditure.
    • Invest in a choice of well governed investment funds to help meet your individual needs.
    • Take an active part in your investment, by logging in online anytime (provided the bond is not in trust).
    • With estate planning through placing your bond in our gift trust - a tax efficient way to pass on your wealth to family members.
    • Meet a range of different investment objectives by allocating separate investment objectives and withdrawal strategies within different segments of the bond.

     

  • Common questions

    The investment bond is an investment that can adapt as your needs change. It provides lots of choice, aiming to help you meet your investment goals. You can invest with the aim of increasing the value of your investment and/or providing an income.

    As an existing policyholder, the Investment Bond provides a way for you to:

    • invest additional cash sums
    • take money out of the bond in ways designed to help you manage your tax, so that tax in effect can be deferred until the bond is fully cashed in.
    • invest in a number of carefully selected investment funds investing in different assets in different parts of the world

    The Investment Bond is set up as an insurance contract, and includes a small amount of life insurance.

    Please remember:

    • the investment bond is designed for your money to stay invested for at least 5-10 years
    • the value of your investment bond can go down as well as up. It’s not guaranteed, which means you could get back less that you originally paid in
    • to tell us if you stop using or change your financial adviser.

    Yes. As an existing policyholder you have the flexibility to pay additional investments of £1000 or more – at any time.

    Your investment bond is intended as a medium (at least 5 years) to long term (over 10 years) investment. But you can take money out of the bond in the following ways:

    • by setting up regular withdrawals (monthly, quarterly, half yearly or annually)
    • by taking a one off amount from the whole bond
    • by taking one off amounts from individual segments or even specific funds.  

    For example - you might want to take a regular income from your bond and aim for the potential growth in your investments to replace what you’ve taken.

    Please note: there are no limits to the amount of money you can withdraw, though in most cases, if the total in your bond reduces to less than £5,000, you’ll need to close it.

    When making any additional investments;

    • any existing regular withdrawals on a % basis -  will automatically increase in line with your additional investment amount
    • any existing regular withdrawals on a £ basis -  will remain at the same level, unless specific instructions are received in writing or by completing the ‘Investment Bond additional investment application’ form .

    Cash in all or part of your bond

    To help you respond to changing markets or your own circumstances, you can easily cash in all or part of your bond. We currently charge you nothing to cash in early, although a charge could be introduced in the future. Please note there could be delays whilst you cash in all or part of your bond. Please see the Investment Matters section of the Policy Provisions for more details.

    Tax implications on withdrawals

    There are tax rules that apply to taking money out of bonds. 

    • You can take up to 5% of the initial amount invested (including any additional investment) in each individual policy year for a period of 20 years, through regular or one-off withdrawals, without any immediate tax liability.
    • Your 5% allowance is cumulative – so, for example, you can withdraw up to 4% per year for 25 years; or if you do not use your 5% withdrawal in one year, you can withdraw up to 10% in the following year with no immediate tax liability, regardless of your tax position.
    • If you make withdrawals that exceed your 5% allowance (including any adviser charges paid from the bond), these may be taxed as income during that tax year.
    • If you’re thinking about fully cashing in your bond – there are potential tax liabilities that you’ll need to consider before deciding to cash in. Please see the ‘What about tax if I cash-in one or more policies of my Bond?’ section of the Key Features document for information.

      Please note: the bond is not tax free but it does give you the option to defer tax until the bond is fully cashed in.

     

    There are no hidden charges. We’re always clear about what you are paying.

    There’s currently no charge to: 

    • add investments
    • switch between funds
    • take one-off or regular withdrawals
    • cash in the bond.

    The only charges you'll pay on bond are the fund charges which will vary depending on which funds you choose.

    Please note you also have the option of paying adviser charges from the bond. For more information please read the Policy Provisions

    Yes. To help you respond to changing markets or your own circumstances, you can easily take money out or move it between funds.

    There is currently no charge to switch between funds, although we may introduce a charge in the future.

    Please note: there could be delays whilst you move between funds. Please see the ‘Investment Matters’ section of the Policy Provisions for more details

  • How our Investment Bond can help you with estate planning

    The Investment Bond allows you to set up a gift trust, so you can limit your exposure to inheritance tax and pass on wealth tax efficiently. A gift trust is an outright gift with no access to either capital or growth.

    For more information on our gift trust, please see our guide to inheritance tax.

    Inheritance tax and estate planning are complex areas. If you want to find out whether holding your bond under trust might be suitable for you, see guide to inheritance tax or speak to your financial adviser.

  • Helping you get the most from your investment

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    Manage your account online

    Provided your bond is not in trust, you can log in at any time to keep track of your investments, and much more.

     

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    View supporting literature

    If you want a reminder of what your plan has to offer, take a look through our literature library to access useful guides and forms.

     

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    Don't have access to your account online?

    See how you could benefit from accessing your investment bond online, whenever you want.

     

  • Need a financial adviser? You can use unbiased.co.uk to find one local to you.
  • Please bear in mind

    Tax and legislation may change and the information above is our interpretation of current law and HM Revenue & Customs rules. The value of any tax benefits will depend on your circumstances.

    Please remember that the value of your investment bond can go down as well as up. It is not guaranteed, which means you could get back less than you originally paid in.

    You should be prepared to invest for at least 5 to 10 years.

    We may delay, limit or refuse to make payments and fund switches in certain circumstances. Please see the 'Investment Matters' section of the Policy Provisions for more details.

    Please remember that past performance is not a guide to future performance.