Guaranteed interest and 100% capital protection
Our Guaranteed Investment Bonds earn a guaranteed interest rate of 4% when you put away a lump sum for 5 years, and offer complete protection for your money.
The Investment Bond could suit you if you won’t need to access your lump sum for 5 years, and you’d like to see growth in your money without the uncertainty of investing on the stock market.
However, if you need your money unexpectedly you can withdraw it at any time during the 5 years and you will receive interest based on the number of years invested, as detailed in the table below.
| Year of exit | 1 | 2 | 3 | 4 | 5 |
| Return p.a. | 0.30% | 0.45% | 0.60% | 0.75% | 0.90% prior to maturity |
The return of your lump sum is guaranteed at any time.
If you die during the five years, your capital lump sum will be paid to your estate along with interest based on the number of years invested, as detailed in the table above.
How it works
You receive annual gross interest, which is guaranteed if you invest for five years. The interest compounds over the five years, so each year the interest is added to the investment and the previous accrued interest. The total interest is equivalent to an overall return over the 5 years.
Your money is 100% protected.
At a glance
- Invest a lump sum for 5 years
- Get a guaranteed interest rate of 4% per annum gross, if you do not withdraw for 5 years
- A single investment of between £5,000 and £250,000 per investor.
- Can be held individually, or jointly with another person.
- Your investment is fully protected.**
- Get hold of your original investment at any point, with an additional interest payment based on the number of years invested.***
- To be tax-efficient, you can either open the bond through a Stocks and Shares ISA (tax free) or as a life assurance policy.
- This product is covered by the Financial Services Compensation Scheme (FSCS).If we cannot meet our obligations you are covered for 100% of your claim
*Terms and conditions apply to all our products
**See FAQs for details.
***Early withdrawals will not receive the full rate.
- Detail
- FAQs
Please read through these documents to make sure the Guaranteed Investment Bond is right for you.
Our Guaranteed Investment Bonds offer a fixed rate and fixed term, providing a safe way to grow your savings with capital protection and guaranteed returns.
Initial Lump Sum – When you open a Guaranteed Investment Bond, you choose the initial lump sum; and additional funds cannot be added later.
Fixed Rate – Unity Mutual guarantees a fixed return payable upon maturity.
Fixed Term – Our Guaranteed Investment Bonds are offered on a two year or five year basis. Depending on which term you choose will determine your maturity date and return when you will be able to access your investment or reinvest.
Capital Protection – As an investor you are protected from market fluctuations as your interest rate is fixed.
The product is designed to run until maturity, However Unity Mutual understands things can change and as such, unlike other providers we will allow you to withdraw your investment (reduced return) without penalty.
Please see terms and conditions for more details.
If there is no second life on the bond at the time of your death, your estate will receive a lump sum. This will be the greater of 101% of your original investment or your original investment plus any interest added, as shown in the table in section 5b of the terms and conditions.
If a 2nd Life is nominated, the bond will continue in their name until maturity or the second death.
Our Guaranteed Investment Bonds do not include any explicit charges to the customer.
You cannot hold a bond jointly, but you do have the option to add a 2nd Life to the bond.
This means that in the event of your death, the bond will automatically transfer to the nominated adult.
- Both investor and nominated 2nd Life must be 18 years+.
- If you wish to add a second person to your Guaranteed Investment Bond, you will need to provide their details during the application process.
- It is not possible to add a 2nd Life after the application has been processed.
The money you invest is invested in the Unity Mutual Life Fund. This fund and underlying assets are invested in a mix of corporate bonds, property and cash.
This enables us to ensure the return of your lump sum and guaranteed growth over the term of your investment.
No, Unity Mutual is unable to provide tax advice. Tax rules can be complex and depend on your personal circumstances.
If you need guidance, we recommend consulting a qualified financial adviser or tax professional. You can find an independent adviser through Unbiased.co.uk, which connects you with regulated experts who can provide tailored advice based on your situation.
The growth on your investment is added to your investment after the fixed term is completed and not on a yearly basis, so Unity Mutual will not issue annual statements.
Your Certificate of Investment
- On opening your Guaranteed Investment Bond with Unity Mutual you will be issued with a ‘Certificate of Investment’.
- Your ‘Certificate of Investment’ serves as proof of your investment and will include key details including: investment amount, interest rate and maturity date. This can be useful for your tax reporting and financial planning.
- Please contact our customer services if you need a new copy.
Our team will write to you prior to the maturity date to discuss reinvestment or withdrawal options.
We are covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation under the scheme.
As this product is categorised as a life assurance product under the compensation scheme, it means you are covered for 100% of the claim with no upper limit for the claim amount in the unlikely event Unity Mutual default.
Further information on the scheme, the amounts covered and how it can be obtained from the FSCS, can be found at www.fscs.org.uk. or by calling Tel: 0800 678 1100.
Any questions?
If you have a question about the 5 Year Guaranteed Investment Bond, please call us on 0161 214 4650 (9am to 5pm Monday to Thursday and 9am to 4pm Friday). Or email the team at insure@unitymutual.co.uk.
If you'd like to speak to find out more about our financial products, you can book a video appointment with one of our sales team who will be happy to answer your questions.
If you need financial advice
Unfortunately we can’t give you any advice on whether our Guaranteed Investment Bond is right for you. We can only provide you with factual information.
If you’re in any doubt about whether this product is right for you, it’s a good idea to talk to an Independent Financial Advisor (IFA). You can find a local financial advisor by visiting www.unbiased.co.uk. You may need to pay for a financial advisor’s help, so make sure you ask them about their fees first.
