Investment Bond

Although the bond grows through bonuses, bonus rates are not guaranteed and in exceptional circumstances could be nil.

If you have to cash in or make a withdrawal, over 5% of the investment, from your bond within the first 5 years, an early surrender penalty will apply. The early surrender penalties reduce each year the bond has been invested, as follows:
Year 1 - 5%
Year 2 - 4%
Year 3 - 3%
Year 4 - 2%
Year 5 - 1%
Year 6 plus – nil

If you cash in or make a withdrawal, a Market Value Reduction (MVR) may also be applied which, if not made on one of the guaranteed MVR free dates, could reduce the amount you receive and you might receive back less than you invested. A MVR may be applied if there's a significant fall in the value of the stocks and shares, or other investments we have invested in.

Inflation will reduce what your investment will buy in the future.

Your personal tax position and the way investment bonds are taxed could change.

If you have any doubt whether this bond is right for you, you should seek financial advice.

If you decide to invest in a Healthy Investment Guaranteed Anniversary Bonus Bond, you will be investing into our Ethical With-profits Fund, which includes a mix of stocks and shares, fixed interest bonds, commercial property and cash deposits. The mix of assets held changes over time.

We avoid investing in companies in certain industries and those whose activities are not in accord with our members’ personal values. Examples are the tobacco, armaments, alcohol and fur manufacturing industries, gambling and pornography providers and companies that manufacture products or ingredients that have been tested on animals.

We seek to invest in companies that are explicitly involved in activities that benefit society and the environment. Examples are companies that are tackling climate change, promoting a low carbon economy, promoting diversity and equal opportunities, and improving energy efficiency.

Our vision is to invest for a better future, deliver good financial returns and make a difference to society and the environment.

The Society aims to provide a consistent return by smoothing the investment return to avoid volatile fluctuations in the value of your investment. Smoothing may not protect you against long term or sustained falls in the value of investments.

For further information on our Ethical With-profits Fund please click here.

Reversionary bonus
A reversionary bonus is an annual bonus which, once added to your Investment Bond, can never be taken away.

These are the reversionary bonus rates we’ve  applied to our Guaranteed Anniversary Bonus Bond:

2023 - 2.50%
2022 - 1.75%
2021 - 1.75%
2020 - 2.00%
2019 - 2.00%
2018 - 2.00%
2017 - 2.75%

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board's expectations of future performance. The level of bonus also reflects the capital and bonus guarantees. The rate of bonus can change every year and could in exceptional circumstances be nil.

All reversionary and interim bonus rates are net of charges. The bonus rate declared is the bonus rate you receive.

Interim bonuses
Unlike declared reversionary bonus rates, which can never be changed, interim bonus rates can be increased or reduced by the Board at any point during the year. The current interim bonus rates are based on a prudent view of future investment performance, solvency and expenses over the year. Interim bonus is paid on all withdrawals made since the last reversionary bonus declaration and on death.

Terminal bonuses
A terminal bonus is an additional final bonus which may also be added on partial and full withdrawals or in the event of the death of the investor. The rate of final bonus can be changed at any time or can be withdrawn altogether.

Life cover
If you die the bond will pay out the higher of 101% of the amount you invested, less any withdrawals of course, or the full value of your bond, including any terminal bonus payable at the date of death. We know that protecting your initial investment in the event of your death is important, especially to our older members.

The Healthy Investment Guaranteed Anniversary Bonus Bond comes with important capital and bonus guarantees to ensure that you receive back your initial investment plus all the bonuses that have been added to your bond, less any withdrawals of course, providing you withdraw on one of the key anniversary dates.

The first guarantee anniversary date is on the 10th anniversary of the date you invested in your bond, and every 5th year after that.

MVRs are never applied on death. This means that if you die your estate is guaranteed to receive more than you invested.

The amount of bonus added depends on the value of your investment, the investment performance of our Ethical With-profits Fund, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance.

The Key Information Document includes examples of what you might receive back based on different investment scenarios. It also helps you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.

Download our latest Key Information Document for our bond.

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