Investment Bonds

Investment Bonds are a single premium investment that aims to provide you with capital growth, while giving you the opportunity to make withdrawals. You can make one-off withdrawals at any time, or you can receive a fixed amount at regular intervals.

Benefits

An investment Bond can provide tax efficient regular withdrawals - up to 5% of the original investment for up to 20 years. It can potentially allow you to diversify your investment by creating a portfolio of funds by accessing a wide range of fund managers and their funds. Castle Financial Services (South East) Limited has had a great deal of experience in organising this style of investment and has designed a wide range of investment portfolios for clients with hugely varying risk profiles.

Investment Bonds can be placed into various trusts for effective inheritance tax planning.

Risks.

As with most investments we do not know the amount you will get if and when you cash in your bond. Some of the reasons for this may be that there is no specific term to an Investment Bond, you might have taken withdrawals from the bond that exceed the growth as the level of the growth is not defined, if the bond is cashed in, in full or part, in the early years of its life, an extra Early Encashment Charge may apply to the units cashed in. The value of fund units can go down as well as up.

Who is eligible?

Available to UK residents aged over 18. There is often a maximum age limit, normally of age 90 next birthday. If the bond is written under trust, the life assured may be under 18.

Term

There is no term limit. Your money can stay invested for as long as you like. This web page is only intended as a general introduction to Investment Bonds. For further information please contact us so we can advise you of the most suitable investment for your circumstances. Independent financial advice is valuable when you are looking to invest your money.