Distribution Bond
This bond is designed to provide growth over the longer term. Your money is invested in our Distribution Bond Fund which invests in a mix of different assets to produce income.
Twice a year this income is transferred to the Distribution Cash Fund which distributes payments to bond holders. You can choose not to take these distributions and have the income reinvested back into your bond.
Remember that the value of your fund may fluctuate and you may not get back your original investment.
Topping up your investment
You can top-up your bond at any time by completing a Distribution Bond Top-Up Application form and forwarding this, together with a cheque to Prudential, Stirling, FK9 4UE. The minimum top-up amount is £1,000. There is no maximum investment.Flexible options for withdrawing your money
You can take regular or one off withdrawals from your bond at anytime. The level of withdrawals you can take can be either;
- The level of income built up in your Distribution Cash Fund (i.e. full distribution), or
- Regular withdrawals selected by you. If the amount you choose exceeds the growth received the value of your bond may fall.
Tax benefits of the Distribution Bond
If you pay tax, the Distribution Bond has a valuable built-in income tax benefit. This allows you to take out up to 5% of your investment each year of your plan for up to 20 years - free from any immediate income tax liability. Please contact your Financial Adviser if you require further details in relation to this.
This is based on our current understanding as at April 2011 of tax legislation and HM Revenue & Customs practice, both of which may change without notice.
What will I get back?
This depends on many things including investment performance, which can go down as well as up, the length of time your money is invested, any withdrawals, charges and any tax liability that may apply.Read more
Distribution Bond & Top-Up Key Features
Taxation of bonds
Distribution Bond Top-Up Application
