Guaranteed Capital Bond - Aims, Commitments and Risks

To increase the value of your investment over the longer term, while guaranteeing your capital at the end of the guaranteed period.

You invest £5,000 or more up to a maximum of £500,000.

You have access to your money at any time subject to restrictions in the first 12 months (see the Can I take money out? section for further details). However, if you withdraw more than 5% of your original investment in any year during the first five years, there are early encashment charges. You should think about leaving your money invested for more than five years and ideally for ten years or more. In general, the longer you leave it, the better the chance of it performing well.

This is a stock market related investment and as such the value of your Bond can go down as well as up and you may get back less than you actually paid in, except on the day the guarantee period ends.

Investments such as stocks and shares can rise and fall sharply in value. Large market movements over short periods of time could mean a large change to the value of your Bond in a matter of days or weeks.

Withdrawals from your investment can eat into your original investment if the amount you take out is more than the growth on the Bond.

During the first five years, we make a charge if you cash in your Bond or take out more than 5% of your original investment in any of these years. This is called an Early Encashment Charge.  For more information see What are the Charges?

If the markets are rising when you cash in all or part of your Bond, you may get back less than if you were invested directly in the underlying assets.

If the Government changes the way this product is taxed, this could reduce the amount you get back or increase the amount of tax you pay.