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Looking to invest a lump sum of between £1000 and £100,000? Then our Investment Bond could be the right home for your money.
Our Investment Bond is a single premium investment that invests in our With Profits Fund.
Offering guaranteed capital protection at certain dates (see FAQ below), there is also the potential for the addition of bonuses during the life of the Bond.
And for those who would like an income from their capital, there is the option to withdraw without penalty up to 5% of the original investment each year.
The Kingston Unity Bond offers a sum assured of 102% of your capital investment. This sum assured is guaranteed on certain dates.
In addition to this, the Bond could grow in value by the addition of annual bonuses. The level of bonus is not guaranteed but once they have been added to the Bond they cannot be taken away if you choose to cash in your Bond on guaranteed dates.
Please read our Key Features document and Product Guide fully for further information, before applying for a Bond. These are found within the Information Pack. You can use the links to the right to access this.
For any further details on any of our products please get in touch:
If you are a UK resident aged 18 or over then you can apply for a Bond.
You can invest between £1000 and £100,000. You can take out more than one Bond per year, as long as the overall investment does not exceed £100,000.
Itis invested in the Society`s With-Profits fund. This fund is made up of investments into four main asset classes; equities, commercial property, fixed interest (eg gilts, corporate bonds, etc) and cash. The purpose of this is to reduce investment risk whilst giving exposure to assets that over a period of time should generate growth and provide a balanced approach with low to medium risk. This makes an appropriate investment for someone who is not averse to a small to medium amount of risk but would like the opportunity to take advantage of potential growth in assets not given by deposit based accounts. The mix of assets will vary from time to time to reflect market conditions.For further information on our with profit fund please see our leaflet "a guide to how we manage our with profits fund" or alternatively view it on our website.
The sum assured is the minimum your investment will be worth on guaranteed dates should you wish to withdraw all or part of your capital. This is 102% of the value of your original investment. If you withdraw capital from your Bond then this will reduce the sum assured.
The Bond can be used to help with tax planning. Under current legislation (which may change) if you're a higher rate taxpayer when you invest in your Bond, and you leave the investment untouched until you become a basic rate tax payer, eg on retirement, there would normally be no additional tax to pay on the proceeds of the Bond. This may however affect your age related personal allowance.
Yes, the Bond can be held in joint names. It will be held on a joint life second death basis.
There is no set investment term. However, there are surrender penalties within the first 4 years (please refer to the Key Features document and Product Guide). There may also be an MVR applied if you withdraw all or part of your capital on non-guaranteed dates. The Bond should be viewed as a medium term investment to be held for at least 5 years.
Your sum assured (and any attaching bonuses)are guaranteed on the 5th and each subsequent 5th anniversary. We guarantee not to apply an MVR if you choose to encash your bond fully, or withdraw in excess of 5% of your original investment if you do so on these dates. This includes a period of up to one week after the first MVR-free date (5th anniversary) and up to 30 days after the subsequent MRV-free dates.
If the Bond is held in your name only, then the Society will pay your estate the greater of 101% of the sum assured in force of the sum assured plus attached bonuses.
If the Bond is held in joint names, the Bond will be transferred to the sole survivor on the first death of either of the policyholders. If the surviving policyholder then dies before encashing the Bond the Society will pay the greater of 101% of the sum assured in force, or the sum assured plus attached bonuses.
The Society reserves the right to apply an MVR on Bonds being encashed fully, or for withdrawals of more than 5% of the original investment, during times of adverse investment conditions unless the withdrawal or encashment takes place on a guaranteed date. This applies to both capital (sum assured) and bonus.
The MVR is designed to ensure that your receive your fair share of the fund and that withdrawals by members cashing in do not affect the value of continuing investment.
The amount of MVR depends on when you invested, the period over which you have invested and the investment market conditions at the time. An MVR is not applied on death. The level of MVR will be set by the Society's board after receiving advice from the Society's Actuary. We will try to smooth the returns of members with Investment Bonds.
This practice may alter at any time and without notice.
You can take a regular income from your capital or make a one-off withdrawal.
Each year regular withdrawals can be made of between 2 and 5% per annum of the original investment. These withdrawals will be without penalty. There will be no taxation on these withdrawals at the time of withdrawal although liability to tax may be deferred and will be dependent on the holder's tax position at the time the Bond is encashed fully.
Withdrawals of over 5% per annum of the original investment are subject to taxation at the time of the withdrawal and may also be subject to a surrender penalty or MVR being applied (see Product Guide and Key Features document for further details)>
Making a partial or total withdrawal could result in the loss of some or all of your higher personal age allowance and may result in a tax liability.
Making a withdrawal will result in your sum assured and any attached bonuses being reduced by the amount of the withdrawal. In cases where the withdrawal also attracts a penalty or MVR this will further reduce your sum assured and attached bonuses.
Withdrawals can be made monthly, quarterly, half yearly or yearly.
Please read the Key Features document and Product Guide fully for more detailed taxation information.
The Society deducts an equivalent charge of 1.5% each year from the With-Profits Bond before the Bonus Rate is calculated.
The premiums are invested in the Kingston Unity With-Profits Fund which invests in a mixture of assets such as property, fixed deposits, shares and cash. Find out more »
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