Do you have a lump sum to invest over 5 years or more?
Looking to invest a lump sum of between £1000 and £250,000? Our Investment Bond offers you the ability to invest a lump sum and which could grow over time by the potential addition of bonuses.
- Potential addition of bonuses to grow your Bond
- Guaranteed dates where you can withdraw your investment without any penalty (known as Market Value Reduction or “MVR” free dates) regardless of market conditions.
- Withdrawals of up to 5% each year of the original investment allowed without any penalty or immediate taxation
- No fixed term, although due to surrender penalties in the first four years it should be invested for at least five years and should be viewed as a medium to long term investment
- An additional 1% of the invested amount will be added to your investment from day one. This will form your “sum assured” which is the guaranteed minimum value of your investment if you withdraw on guaranteed dates
- If you choose to take withdrawals from your Investment Bond this will reduce the guaranteed sum assured.
- Available to UK residents aged 18 or over
- Can be held in joint names
It is important to remember that, depending on investment conditions, you may not get back the full amount originally invested.
If you close your Investment Bond or withdraw over 5% of the value of your original investment when surrender penalties are in force then a penalty will be charged regardless of investment conditions and you may get back less than you paid in.
The addition of any bonus is not guaranteed and depends upon the performance of the underlying With Profits fund, our expenses and other factors. Past performance is not a guarantee of future performance and rates may be higher or lower than in previous years.
Please ensure that you read the full Key Features document contained with the application before applying for your Investment Bond. You should also read the Key Features Guide below and the Frequently Asked Questions. If there is anything you do not understand then you should contact us for clarification.
We are not able to offer advice and therefore if you require advice on whether this is the right product for you, you should seek advice from an independent financial advisor who may charge for this.
Tax treatment is based on our current understanding of rules which may change in future and will depend on individual circumstances.
- A lump sum investment of between £1000 and £250,000.
- Can be held in single or joint names.
- Enhanced sum assured of 101% of the original investment.
- Guaranteed capital protection (through a sum assured) on certain dates.
- First guaranteed date is 10th anniversary of the Bond.
- Income withdrawal of up to 5% per year (of original investment) without penalty.
- Potential for the addition of bonuses.
- Invests in the Society’s With Profits Fund.
- Tax treatment of full or part withdrawals depends on your tax status and the amount of the withdrawal – please see Key Features Guide within the Application Pack for further details.
- Life Cover during the life of the Bond.
- Surrender penalties apply in the first 4 years. A market value reduction may apply on non-guaranteed dates.
This pack contains all the documents you need to apply to open an Investment Bond.Download Application Pack
For any further details on any of our products please get in touch:
Where are my premiums invested?
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
A Guide To Our With Profits Fund
Our consumer friendly Principles and Practices of Financial Management which explains how we manage our With Profits fund.Download