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Investment Bonds

Investment Bonds for Income & Growth

Investment bonds are a lump sum investment available mainly through life assurance companies.  They enable you to gain access to an extensive range of investment funds. Investment bonds can offer flexibility as there is no fixed term and additional capital can usually be invested at any time. Some Investment bonds offer a guaranteed income option for older investors.

See below for a selection of investment bonds:

Guaranteed Income Bonds
 Product NameIncome RangeMinimum Age 
Aegon Secure Income Bond 5% pa18More Info >
  • Guaranteed Income of 5% pa of your original investment whatever the markets
  • You can access your capital at any time
  • Can be written in trust to mitigate inheritance tax
  • Guaranteed death benefits
  • Underlying value of your capital is not guaranteed
  • Minimum investment of £5,000

Investment bonds have the following features:


  • Can be particularly useful to those who are currently higher rate taxpayers but are likely to be basic rate taxpayers in the future, for example, after retirement.
  • Investment bonds are deemed by HM Revenue and Customs to be “non-income” producing investments and as such, provided that withdrawals are retained below the 5% per annum limit, they can make extremely useful investments for trusts and trustees.
  • Investment bonds can also be an important tool when carrying out inheritance tax planning. For example, they can be gifted into a suitable trust arrangement and, as a “potentially exempt transfer”, provided you survive for seven years from the date of the gift, will fall outside of your estate for inheritance tax purposes. There are, of course, other options available to investors undertaking this area of planning.

One issue that should be borne in mind when investing in investment bonds, however, is that the withdrawals received could affect your entitlement to the “age related allowance” for income tax purposes if you are age 65 and over.


Invest by post »

Complete our enquiry form and recieve our investment fund pack which includes key feature documents and application forms by post.


Get assistance - call us on 0845 308 2525 

If you would like us to go through the application process with you, or if you have any questions, just call our Customer Helpdesk.

(9am to 5.30pm Monday to Friday)


Alternatively if you require advice speak to an advisor today about your investment options - Investment Advice Service »

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.