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Prudential Savings Account / Prudential Investment Bond

Fully or partially cashing in your investment bond

If you’re considering taking part or all of the cash from your plan as a lump sum, we’ll be happy to help. It’s important to note that once you’ve told us what you’ve decided to do, you can’t change your mind. Please be sure you understand all your options, and the effect of any changes you make. There are a few things you and any other plan owner should think about before you make any decisions.

If you have any questions once you’ve read this summary, or need any help understanding your options, just call us on 0345 640 1000, or +44 178 644 8844 if you’re calling from abroad.

We might record your call for training and quality purposes. To find out more about how we use your personal data please visit pru.co.uk/mydata.

How an investment bond works

Prudential Savings Account and Prudential Investment Bond are medium to long-term (5 to 10 years or more) investment plans that accept a mix of regular and one-off payments. They invest in the With-Profits Fund. Both plans also provide a small amount of life and terminal illness cover.

The value of your investment can go down as well as up so you might not get back the amount you put in.

Your options

Your options are:

  • Fully cashing in your plan.
  • Cashing in part of your plan.

As an alternative you might want to consider taking regular withdrawals.

Things to consider before making your decision

There are some important things to consider before fully or partially cashing in your plan:

  • You may be subject to early cash in charges.
  • Your plan may be closed if the value falls below £1,000.
  • It can create an tax liability – see ‘tax considerations’ below.
  • It can impact your personal allowance and entitlement to tax credits.

If you took out life cover and/or critical illness cover with your plan, they will be unaffected.

Tax considerations

Whether any tax would be due depends on a number of factors including your personal tax position and the timing and amount of cash taken out to date.

Cashing in all or part of your plan can have tax implications. There’s more information in our guide to tax on your investment bond.

You might need to pay tax depending on your circumstances and the options you choose. Tax rules can also change in the future. You may want to seek advice.

Protecting yourself from investment scams

Fraudsters are always out there and constantly changing their tactics. So if you’re thinking of reinvesting the money from your plan, take a minute to find out how to stay ahead of the scammers.

What to do now

Give us a call on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad. 

We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.

Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area at pru.co.uk. Financial advisers will charge you a fee for any advice they give you, but it will be personal to you.

We’re here 8am – 6pm Monday to Friday (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.

 

© Prudential 2023

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.