How do investment bonds work?
Investment bonds are purchased from an insurance provider with a required investment of at least £5,000. As such, it’s often beneficial to do research and receive advice on what provider will benefit you the most and what funds to choose. A good investment will then grow over time, allowing you to withdraw the money as a lump sum or over the course of the investment.
How much risk is involved in investment bonds?
Due to the nature of this being an investment, there is a risk to your money. If your investment doesn’t perform well, then you may lose money over time. However, there are some bonds that guarantee you’ll receive at least as much as you originally invested when the term ends. This provides some more security for your money. As such, investment bonds are considered a safer way to invest.
How can I access my money?
You can access the money in an investment bond by withdrawing a lump sum from your bond at any time, depending on the stipulations of the investment, or you can cash in your investment fully. Both of these may be subject to tax implications based on the type of investment.
If you’re ready to invest your money into Bonds but want to make sure you’re making risk-averse decisions, get in touch today. We’ll be happy to provide you with a no-obligation consultation to talk through your options.