If you don't want an income, any growth on your bond will be used to buy additional units. This will increase the growth potential of your bond, however growth is not guaranteed, and will depend on the performance of your investments. If the income you take is more than the growth on your bond, then some of the original investment will be used to pay for the income distributions. It's important to remember that this could reduce the value of your bond.
We strongly recommend you seek financial advice before taking an income.
You can take regular income distributions:
This can be set up either from the 16th of the month following the start of your investment or at any point later. If you choose to take income before the declared distribution (February and August), we will cancel units to pay for the required level of income.
The minimum amount you can take as a regular income distribution is £50. You must keep at least £300 invested in your bond unless you are fully cashing it in.
You can also take one-off withdrawals from your bond. The minimum amount you can withdraw as a one-off is £125. Taking withdrawals will reduce the value of your investment. Your bond must always be worth at least £300 unless you are fully cashing it in. Please see our Key Features for details.
You can only take withdrawals of up to 7.5% a year from your bond. The maximum allowance is based on the investments you have paid in less any one-off withdrawals.
You can also fully cash in your bond at any time, however, if you fully cash in your bond or make a one-off withdrawal from it within the first five years of any investment, we will apply an exit penalty.
