Capital investment bonds

Capital investment bonds are financial products that offer flexibility in accessing your money through regular or one-time withdrawals. They typically require a minimum investment period of five years, and there may be penalties for withdrawing funds before that time.

One of the advantages of capital investment bonds is that they can be held by individuals of any age, without the need for a health check. These bonds are established through insurance companies and can be opened either onshore or offshore, depending on your personal circumstances. Offshore bonds may have tax advantages, but this decision should be based on your specific situation.

While there is no maximum limit for investment, the minimum investment amount for capital investment bonds is often relatively high, starting around £10,000.

There are different ways to utilise a capital investment bond. You can choose to receive regular income withdrawals, but this will reduce the original investment capital. Some policies also allow additional payments besides one-time withdrawals. Another option is to benefit from the potential profit of the stock market, and certain policies may provide protection against market downturns for an additional cost.

It’s important to consider management charges associated with capital investment bonds. These charges can vary significantly and may be in the form of an annual charge, initial charge, or early withdrawal charge.