The Guaranteed Investment Bond is designed for those looking to invest a lump sum for growth for the medium to long term. Typically at least five years.

It aims to take advantage of any stock market growth during the good times whilst, at the same time, offering the protection of valuable guarantees at five year points should financial markets take a downturn.

So you get the security of a safety net should investment conditions turn out to be unfavourable.

Every five years you'll hit a guarantee point, which works in two parts:

Guarantee one: At each guarantee point if the value of your investment has grown, we'll lock in any increase in value.

Guarantee two: At each guarantee point if the value of your investment has fallen, we'll restore it to the latest locked-in value or to the original amount you invested.

So if you decide to withdraw your investment on a guarantee date, you'll receive at least your guaranteed amount including any locked-in growth.

An example

The example below shows how this works.

A    You decide to invest £3,000 into the Guaranteed Investment Bond.

B    Over the first five years investment conditions prove to be favourable and the value
      of your investment has risen to £3,470.

C   On the fifth anniversary, we promise to lock-in that growth and increase your
      guaranteed amount to £3,470.

D   Over the next five years, investment conditions prove to be less favourable and
      the value of your investment on 6 April 2022 has fallen to £3,167.

E    On the tenth anniversary we promise to make up the shortfall and increase the
      value of your investment back up to £3,470. The amount we locked-in on the fifth
      anniversary.

Figures are for illustrative purposes only.

It is very difficult to predict exactly what you'll get back as your payout will depend on a number of things such as our investment performance, the financial markets, our charges, how long you invest for, whether you make any withdrawals and whether there are any tax implications.

If you do cash-in between the guarantee points, you could get back less than you have invested.

The Guaranteed Investment Bond is for anyone looking to invest for growth for the medium to long term. Typically at least five years.

It aims to take advantage of any stock market growth during the good times whilst, at the same time, offering the protection of valuable guarantees at five year points should the financial markets take a downturn.

Although if you do cash-in between the guarantee points, you could get back less than you have invested.

So you get the security of a safety net should investment conditions turn out to be unfavourable.

It is very difficult to predict exactly what you'll get back as your payout will depend on the performance of our Life Fund, which is where your money is invested.

But remember, your money has the protection of valuable guarantees at five year points should the financial markets take a downturn. If you do cash-in between the guarantee points, you could get back less than you have invested.

There are no set interest rates for the Guaranteed Investment Bond.

You can access money whenever you need to as there is no fixed term. But remember, the Guaranteed Investment Bond is designed for those looking to invest for the medium to long term.

If you withdraw all your money between guarantee points, you'll get back what it's currently worth. Which may be more or less than you originally invested.

You also have the flexibility to withdraw part of your investment as long as you leave £500 in the Bond. Any part withdrawals you make will of course have an impact on your guaranteed value.

You can invest between £3,000 and £250,000 in a single investment and all payments must be made by cheque.

Generally you won't have to pay any basic rate income tax or capital gains tax on your returns if you are a basic rate tax-payer as it has already been paid on the underlying Life Fund.

Any income you take from your investment is treated by HM Revenue & Customs as a regular partial surrender. They allow you to take up to 5% of the initial investment each year for up to 20 years without paying income tax.

If you are a higher rate taxpayer, or become one in the future, you may have to pay tax - see the important information document for more details.

It's important to remember that the government can change tax rules at any time.

There is no fixed term so you can access money whenever you need to. But remember, the Guaranteed Investment Bond is designed for those looking to invest for the medium to long term.

If you withdraw all your money between guarantee points, you'll get back what the Bond is currently worth, which may be more or less than you originally invested.

If you want to invest more into a Guaranteed Investment Bond, you'll need to open new bonds.

Each new bond can be opened with a minimum £3,000 and each investment you make will have its own Double Guarantee.

As this is an investment based option, you cannot set up regular payments.

All investments must be made by cheque.

Any current or retired members of the Police Service can open a Guaranteed Investment Bond.

And your family is welcome too. Partners and your wider family including parents, brothers and sisters, children and grandchildren can all benefit by opening a Guaranteed Investment Bond and becoming members of Police Mutual.

The application process is simple and takes no more than a couple of minutes when you apply online. When we receive your application, we'll check it and send it back to you for signature. When you return it you'll need to include your cheque.

If you plan to send us a building society cheque or banker's draft, please ensure that the issuer confirms the name and account number, either on the front or back of the cheque together with branch stamp, or with other supporting documentation.

Additional checks

To comply with money laundering regulations, we sometimes have to carry out an online identity check with a reference agency when you apply.

The agency will add a note to your credit record to show that an identity check has been made. We won't share this information with anyone else and it won't affect your credit rating.

We'll send you a statement each year which will show the performance of your Guaranteed Investment Bond so you'll be able to keep track of your investment.

You can also contact us when you'd like an update in between your statements.

There are no set interest rates for the Guaranteed Investment Bond.

It aims to take advantage of any stock market growth during the good times whilst, at the same time, offering the protection of valuable guarantees at five year points should the financial markets take a downturn.

So you get the security of a safety net should investment conditions turn out to be unfavourable.