Capital Investment Bond for Associates

A flexible investment plan that also provides a small amount of life cover

We've provided a summary of some of the key facts about the Capital Investment Bond below. You should read the Key Features document for detailed information about the plan. A link to this document is shown at the end of this page. 

Facts at a glance:

Who can take out a Capital Investment Bond?
You can take out a Capital Investment Bond if you are aged 18 or over and are a UK resident for tax purposes.

You can choose to cover the life of one or two people. You don't have to be one of the people covered.  If you are only covering the life of one person, they must be age 79 or under when the plan starts. If you are covering the lives of two people and you want the plan to pay out when the first person dies, both of the people covered need to be 79 or under when the plan starts.

How much money can I invest?
You need to pay at least £7500 when you start your plan, then £1000 or more if you add to it later.

How much will I get back?
The amount of money you get back will depend on how your Investments perform.

Where is my money invested?
There are 17 investment funds to choose from and you can hold money in up to 12 of these at any one time.  You can find details about the available funds in our fund fact sheets on the Fund Prices page.

Can I switch money between funds?
Yes, you can move into one or more different funds at any time.  You can make up to 12 fund switches in any 12 month period. 

Can I take some money out?
Yes, you can start taking regular withdrawals at any time, and take one-off withdrawals whenever you want to.

What happens when the person covered by the plan dies?
We'll pay out a lump sum of 101% of your plan's value.

What are the charges?
We take an Annual Management Charge of 1.5% of how much your plan is worth each year, or 1.8% when you are making regular withdrawals.  For some funds we take an extra Annual Management Charge.  Our fund fact sheets have more information about the extra charges.

We also charge when you make one-off withdrawals during the first five years of the plan, or when you make two or more fund switches in each calendar year.

More details about the charges are shown in the Key Features document

Can the plan be set up in trust?
Yes, you can arrange for your plan to be held under trust. Trusts can provide a way of making sure your plan is dealt with in line with your wishes if you die, and can help to reduce the amount of tax which needs to be paid in certain circumstances.

What about tax?
Please refer to the 'What about tax?' section in the Key Features document for a summary how tax applies to the plan based on how we currently understand the rules.