Capital Investment Bond
Invest a minimum of £5,000 for the medium to long term
Our Capital Investment Bond lets you invest at least £5,000 for the medium to long-term – usually at least five years. There’s a wide range of over 150 insured funds for you to choose from, and you have the flexibility to switch funds, make withdrawals or pay in additional amounts when you like. The bond also lets you make tax-deferred withdrawals, delaying the payment of tax for up to 20 years.
To apply call 0845 272 8810
Overview
The bond offers you a great deal of flexibility.
- No fixed term – but typically held for five years or more
- Flexible – invest more money or take money out whenever you like
- Wide investment choice – choose the level of risk that suits you, from over 150 insured funds – with the option to switch funds at any time, currently free of charge
- Money when you need it – you have the option to make regular withdrawals (from £50) and one-off withdrawals (from £500) so there is no need to cash-in your whole bond if you don’t want to. Withdrawals are subject to an overall limit and will reduce the value of the bond.
You can find full details of our Capital Investment Bond in the Key Features Document (PDF, 239kb).
Charges
You can find information about the charges on your bond in the Key Features Document. If you cash-in your bond or make a one-off withdrawal from it within the first five years, you’ll incur an exit penalty.
Investment returns
Investment returns aren’t guaranteed. The value of your investment can go up or down so you may get back less than you paid in.
Find out more
To find out more call us on 0845 272 8810
To apply call 0845 272 8810
To apply call 0845 272 8810
How it works
Eligibility
- You must be aged 18 or over to be a bondholder
- You can insure a life, from 3 months to 84 years
- You need to be a resident of the UK or Channel Islands
- Up to six people can jointly own the bond, and up to six lives can be insured
Minimum and maximum amounts
- Minimum initial investment – £5,000
- Minimum – you must keep at least £300 invested
Adding more money
- Lump sums – the bond gives you the freedom to make additional investments whenever you like. This is subject to a maximum age of 84 (insured life) and a minimum additional investment of £1,000.
Withdrawing money
- Lump sums – withdraw at least £125 each time
- Regular withdrawals – at least £50 a time, with a choice of frequency from one month to every 12 months
- See the Tax section below for important information relating to withdrawals.
Switching funds
You can invest in as many funds as you like. Switching funds is currently free of charge and tax-free. For full details please refer to the Key Features Document (PDF, 239kb).
Tax
- Each year you can withdraw up to 5% of the total payments made into your bond without any immediate tax liability. Tax rules may change.
Once you have taken withdrawals equal to the total amount paid into your bond, this allowance stops.
If you don’t use your full 5% allowance in a particular policy year, you can carry it forward, until you have used up the whole allowance. You need to keep at least £300 in your bond for it to remain open.
Please note that if you cash-in part or all of your bond, or take withdrawals in excess of 5% of the total amounts paid into your bond in a policy year, part of your benefit may be treated as a ‘chargeable gain’. This is explained in the Key Features Document.
Investment returns
Investment returns aren’t guaranteed. The value of your investment can go up or down so you may get back less than you paid in.
Find out more
To find out more call us on 0845 272 8810
To apply call 0845 272 8810
To apply call 0845 272 8810
Fund choice
Select from 150 insured investment funds, offered by different fund managers. You can invest in up to 100 funds at one time.
Investment returns
Investment returns aren’t guaranteed. The value of your investment can go up or down so you may get back less than you paid in.
Find out more
To find out more call us on 0845 272 8810
To apply call 0845 272 8810
