Guaranteed Investment Bond

No more waiting for savings rates to rise - growth potential & guarantees at five-year set points

Apply online

 

Guaranteed Investment Bond

Benefits

Enjoy a Guaranteed Investment Bond and its rewards:

  • Growth potential - More growth potential on your savings as there's no set interest rate
    Guaranteed - A unique double guarantee at five-year set points*
    Affordable - A low minimum opening investment of £3,000
    Accessible - No fixed term, access your money at any time^

The (not so) small print

* The value of tax benefits depends on your individual circumstances and tax rates or legislation which could change in the future.

^ If you access your money in our Guaranteed Investment Bond at any time other than on the guarantee points, you'll get back the current value - which may be less than you invested. The guarantee points are every five years.

Important Information

It's important you understand all of the Key Facts Summary for the Guaranteed Investment Bond. We recommend you read the document (in the 'Important information' tab) before you apply, and keep it in a safe place.

Key features

Guide to investing

Other things you should know

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 amount 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.

The value of tax benefits depend on your individual circumstance and tax rates or legislation could change in the future.

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. For further information read important information document.

There's no interest rate with the Guaranteed Investment Bond. Any growth in your investment is based on the performance of our Life Fund.

The Guaranteed Investment Bond provides the potential for higher returns than an average deposit account over a five year period. There are no set interest rates because what you'll get back depends 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. But if you do cash in at any time other than on the guarantee points you could get back less than you have invested.

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 growth within the Stock Market 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.

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.

 

Guaranteed Investment Bond Double Guarantee Graph

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 at any time other than on the guarantee points, you could get back less than you have invested.

Calculator

 

3. Illustration over 10yrs

illustration over 10 yrs
 
1.50%
1.50%
 
4.50%
4.50%
 
7.50%
7.50%

1. How much would you like to invest?

I'd like to invest

2. Your potential returns

Based on the details you've provided you could potentially receive a cash lump sum between  at 1.50% and  at 7.50% investment growth per year at the end of the term.
 

These figures are only examples of what you might get back after 10 years and are not guaranteed. You could get back more or less than the amounts shown and the actual amount you receive will depend on how your investment grows, on our charges and on the tax treatment of your investment.

Standard projection rates have been used. If you withdraw your money outside of the guaranteed points, you will get back the current value of your investment, which could be more or less than you've invested.

We pay external fund managers to actively manage parts of the Life Fund. We expect that all of these investment management costs will be more than covered by the increased investment growth potential provided by active management. The growth rates used for your plan make no allowance for this additional performance.

Past Performance

The table below shows the value of a Guaranteed Investment Bond invested on 1 January 2012 to 1 January 2017. It shows the value that a member would have received if they were to withdraw all of their investment on the specified dates.

You should remember past performance is no indication of future performance and should not be the reason for choosing a product.

Example based on £20,000 initial investment on 1 January 2012 and assumes no withdrawals are made.

Performance figures take into account all charges (including the initial charge) which applied during the period. Charges may vary.

Guaranteed Investment Bond performance figures are taken from Police Mutual internal figures.

The performance of your own investment will depend on how much you invest, our charges and our investment performance.

If you access your money in our Guaranteed Investment Bond at any time other than on the guarantee points, you'll get back the current value which may be less than you invested. The guarantee points are every five years.

The value of tax benefits depends on your individual circumstances and tax rates or legislation which could change in the future.

 

Product Summary

Returns How much you get back depends on the performance of the Police Mutual Life Fund. Your money is protected by our unique double guarantee.
Guarantees The unique double guarantee protects your money and locks in any growth at five-year set points. If you cash in at any other time you could get back less than you have invested.
Withdrawals You can access your money at any time, but you should aim to invest for at least five years. Any withdrawals you make will reduce the value of your investment and therefore your guarantee.
Tax Status There are generally tax-free returns for basic rate taxpayers. Higher rate taxpayers may have to pay tax. The value of tax benefits depends on your individual circumstances and tax rates or legislation which could change in the future.
Charges There are charges on this plan. You can find full details in the “What are the charges?” section of the Guaranteed Investment Bond Important Information document.


It's important you understand all of the Key Facts Summary for the Guaranteed Investment Bond. We recommend you read the document (in the 'Important information' tab) before you apply, and keep it in a safe place.

For further details of which products we offer through each Police Mutual Group company, please see the Legal page.

Close

Product Documents

It is important you understand all of the key features of the Guaranteed Investment Bond if you are considering applying.


Guide to investing

Key features document



Continue to application