Capital investment bonds

Capital investment bonds are bought with the end goal of capital growth and/or income over the medium to long term.

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Capital investment bonds explained

Capital investment bonds give you the ability to access your money in regular or one-off withdrawals. They are usually a minimum five-year investment, some with early-surrender penalties for cashing in before that time.

In most cases, someone of any age can hold a bond. Unlike some investment schemes, there is no need for a health check for capital investment bonds.

They are set up through insurance companies, and can be opened onshore or offshore (such as the Isle of Man or Channel Islands). Offshore bonds are sometimes advantageous due to tax concessions, but the decision should be based on your personal circumstances.

Although there are no maximum limits for investment, the lowest bracket can be quite high compared to other investments. Entry points can often be as high as £10,000.

There are various ways to take advantage of a capital investment bond. Drawing down income is one option, but will obviously deplete the original capital.

With some policies, as well as one-off withdrawals, you may be able to make additional payments. Profit from stock market upturn is another option and, for a cost, some policies will protect against market downturn.

Be sure to take into account management charges if you are considering a capital investment bond. Charges vary widely, and can be taken an annual charge, or an initial charge and early en-cashment charge.

Contact capital investment bonds advisers to arrange an appointmentTimeMgt

While we are based in Glasgow, we are happy to travel to visit clients across Scotland and the rest of the UK. For free initial capital investment bonds advice from our experienced financial advisers, contact us on drawing down income or fill out our online enquiry form.