Other Onshore Bonds
Our Capital Investment Bond and Distribution Bond are closed to new business but remain open for additional investments.
As with any investment the value can go up or down and may be worth less than was paid in.
- 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
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).
Each year you can withdraw up to 5% of the total payments made into your bond without any immediate tax liability. Laws and tax rules may change in the future. The information here is based on our understanding in September 2012. Your personal circumstances also have an impact on tax treatment.
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 (PDF, 239kb).
Capital Investment Bond
Our Capital Investment Bond lets you invest at least £1,000 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.
The bond offers you a great deal of flexibility.
- 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).
The Distribution Bond is designed to be flexible and provide you with a regular income. You can also choose how often to receive an income, which can be:
- Every month
- Every three months - in February, May, August, November
- Every six months - in February and August
The minimum investment amount is £10,000.
We invest the money in assets that are most likely to deliver a regular income, while balancing this with the potential for capital growth. If your needs change, you can switch funds at any time, currently free of charge.
You can find full details of our Distribution Bond, including the charges, in the Key features document (PDF, 239kb).
Standard Life offers a range of different trusts that can be used to hold a Distribution Bond. These trusts offer different things so you can choose the one that suits your needs best.
Growth isn't guaranteed. The price of units in investment-linked funds depends on the value of the underlying assets after charges. Their value can go down as well as up, so you might get back less than you paid in. If the income you take is more than the growth on your bond some of the original investment will be used to pay for the income distribution. This would reduce the value of your bond.
Current distribution rate
We have mailed all our customers invested in the Distribution Fund in February and August of each year advising them about the distribution payment levels. However, as the percentage hasn’t changed since 1995 we have taken the decision to stop sending the letters unless the rate changes again.
February 2013 Distribution
The Distribution was 2.50% and the pence per unit was as follows:-
|Tailored Investment Bond||2.6p|
|Capital Investment Bond (Level Charging option) and Distribution Bond (Level
Charging option) – pre/post 13/09/04
|Capital Investment Bond and Distribution Bond – (Stepped charging option) after
Make additional investments
To make an additional investment to your Capital Investment Bond or Distribution Bond talk to your Financial Adviser or call Standard Life on 0845 272 8810 ( calls may be monitored and/or recorded to protect you and us and help with our training. Call charges will vary.)