What are investment bonds?
Investment bonds are life insurance policies where you invest a lump sum in a variety of available funds. Some of these bonds run for a fixed time and others have no set term. The amount you get back once you cash in your investment bonds will really depend on how well the investment has done.
Investment bonds might work for you:
- If you want to invest a lump sum of at least £5,000 plus
- You can afford to tie your money up for at least five years
- You understand that the value of your investment can go up and down and you might get less back than you invested.
More information about Investment bonds
All gains and income earned within an investment bond are taxed at 20% and paid directly out of the investment bond. You can also usually withdraw some or all of you money whenever you need to but a penalty might apply especially in the first few years.
Investment bonds can be bought through us, but first we would advise talking to us to explore whether investment bonds fit your needs.
To learn more about investment bonds and the options available to you, please get in touch today to set up a meeting or call to discuss further.
*Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested.