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Investment Bond

A bond with growth & income options

Designed as a long-term investment, our Investment Bond gives you the potential to benefit from stock market growth.

 

  • Invest for income, growth or a combination of the two, with regular or one-off withdrawals

  • Access a wide range of investment funds, all managed by our professional fund managers

  • Putting the bond in a Trust could help you to minimise any inheritance tax liability

Is the Investment Bond for you?

If you’re wondering whether or not this investment bond is right for you, take a look at what Select Investment could do for you.

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Medium to long-term

If you have enough funding for a rainy day or two, you might want to consider Select Investment and put some of your spare money to work – as long as you're happy with the level of risk involved.

Income tax payer 

If you’re a basic or higher rate tax payer with at least £10,000 to invest over the medium to long term, which is 5 to 10 years or more, then Investment could be for you.

If you're not a UK taxpayer, you won't be able to take out an Investment bond.

Our charges

There are two types of charges that we may apply to your bond – annual management charges and fund charges.

Annual management charges

We take an annual management charge to cover the cost of running your bond. We cancel units in your funds on the first of each month to pay for it.

Fund charges

Some funds have charges in addition to the basic annual management charge. These vary depending on the funds you choose.

There may be an extra management charge and/or a fund management expense charge, which covers the fund manager’s expenses connected with buying, selling, valuing and maintaining the assets.

What our Investment Bond offers

Our investment bond has a variety of benefits that could help you grow your money.

Growth potential

The funds you can invest in have the potential to increase in value, so you could see your money grow over the long term 

Wide fund range

Our wide fund range offers a distinct selection of investment funds, catering to different aims and risk levels. Speak to our team to learn more about all of our funds

Expertise

All of the funds available through our Investment Bond, benefit from expert fund management. The Fund managers’ aim is to achieve the highest possible returns they can for your money.

Flexibility

Take regular or one-off withdrawals and move money from fund-to-fund.

Keep track of your investments any time, anywhere

Check your bond value, withdraw money, see your transaction history or view your documents with an online account (this isn't available for trustees, deputies and attorneys at present).

Take your money out, your way

You can make regular or one-off withdrawals from your bond. Please remember, any withdrawals you take from your bond will be taken from your capital.

Tax planning

You might want to reduce or even eliminate any inheritance tax liability, so putting your bond in a trust might make sense. Depending on the way you put your bond in trust, you could lose access to the investment and/or any growth it generates.

Additional Investments

We always recommend you speak to one of our financial adviser before making decisions about your investments. If you have your own financial adviser, please speak to them. Or, you can call us on 0808 239 6359. We can put you in touch with either one of our adviser's or one of our trusted partners. An adviser may charge for their services.

How it works

We explain the way the Investment Bond works in 3 steps.

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Choose your funds

We’ll invest your money in the funds you choose, like stocks and shares, property, or gilts.

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We’ll help you diversify

By investing in a range of different funds, you can spread the risk to your money, as you’re not putting all your eggs in one basket.

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We’ll keep you updated

We’ll send you a statement each year after the anniversary of your investment. The statement includes a summary and valuation of how your bond is doing.

Things to consider

Make sure you're comfortable with the risk of investing before you get started.

  • The value of your investment can go down as well as up and you may get back less than you invest

  • Remember, any income from Select Investment will be in the form of cash withdrawals from the bond. These will be capital payments rather than interest or earnings. So, if investment growth doesn’t keep up with the level of income you take, the value of your bond will reduce

  • Tax treatment depends on your individual circumstances and may be subject to change in future.

  • Depending on the funds you choose, there may be restrictions on when you can access your money. Or there could be penalties imposed on withdrawals at certain times. Contact our team and ask for the fund factsheet and learn more about the features and risks before choosing a fund.

Are you eligible?

Minimum Investment Amount is £10,000 minimum with no maximum

In most cases, the maximum that can be invested into any Smooth Managed Fund is £1 million. If you want to invest more than this, please contact us.


Aged 12-85

From ages 12-15, the proposal needs to be signed by a parent or guardian

 

Basic or higher-rate income tax payer

If you don’t pay any income tax, the Investment Bond may not be suitable for you

Alternatives to Investment Bond

Investment Account

An excellent option if you've used your ISA allowance. Open an Investment Account and manage everything under one umbrella.

Savings Account

Our savings marketplace offers you a selected range of cash savings accounts. Each has competitive interest rates, so it's just a case of finding the one that best suits you.

Self-Invested Pension Plan

Start saving for your retirement, or bring all your pensions into one place with out flexible Self-Invested Pension Plan (SIPP).

Learn more about savings and investments

Not sure if you should save your money or use it to invest? Our articles can help outline the options open to you.

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Find out how you could make your money work smarter with our easy-to-understand guide.

What is investing?

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Thinking of investing? Here's what you need to know about funds.

Investing in funds: the basics

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