Prudence Bond

Your Prudence Bond, which was also known as the Prudence Managed Bond, is designed to provide you with medium to long term capital growth. Some of your money is put into our With-Profits Fund, which invests in lower- to medium-risk investments. However, you're also able to access other investments through the 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 reading the key features completing a top up application form and forwarding this, together with a cheque to Prudential, Stirling, FK9 4UE.

The minimum top-up amount is £1,000, or £5,000, depending on when you started investing. There are maximum investment levels under the plan (generally up to £250,000 is OK), but these vary depending on the bond version you hold, or the investment fund you have selected.

So you should ring our call centre on 0845 640 1000 to confirm these before making a large top-up.

Benefits

• You can take regular or one off withdrawals from your bond at any time. HM Revenue & Customs may not tax these regular payments as income in the same way that dividends or interest are treated.
  Note that certain withdrawals could be subject to charges or a Market Value Reduction.
• You can set the amount of regular withdrawals and choose how often it is taken, within certain minimum and maximum levels.
  If you pay tax PruBond has a valuable tax benefit. This allows you to take out up to 5% of your investment each year from your plan for up to 20 years - free from any immediate tax liability. There may however be additional tax liability when you cash in your plan.
  This is based on our understanding, as at August 2010, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax relief) depends on individual circumstances.

What will I get back?

This depends on many things including investment performance, which can go down as well as up, any withdrawals, features you choose, charges and any tax liability that may apply.

Review your Prudence Bond

• To top up read the key features and fill out the top up application form.
• To make any changes to your bond, change investment funds, make withdrawals, or find out more about your bond call 0845 640 1000 (Monday-Friday 8am-6pm) or send a secure email.
• We send you a statement each year but you can also request a fund valuation online.

Read more