Best investment bond providers in the United Kingdom

An investment bond, otherwise known as a profit investment bond, usually lasts for a minimum of five years. Their main purpose is to grow funds invested in savings and people may also receive annual or monthly instalments. Typically, a company will share the profits with the customer in a With Profits scheme.

In this scheme, many companies that operate a bonus scheme may withhold some of the money so that they can allocate it in months or years where the bonus figures are not as good. This is known as smoothing, a process that eventually ends when the investment bond has finished.  An administration fee and other various charges may be applicable and customers should note that there is a possibility that they may end up with less money after the bond matures.

One of the best investment bond providers includes Sheffield Mutual, which claims to offer a return of £12,6176.50 for £10,000 invested. Sheffield Mutual offers a minimum investment of £1,000, with a limit of £50,000 for each financial year. What also makes Sheffield Mutual stand out is that it offers a basic sum assured of 103 percent for the original investment in the event that the account holder dies before the policy finishes.

Meanwhile, the company with the best return is currently AEGON, which offers just under £14,700 for an investment of £10,000. Customers are also able to alter their funds 12 times a year with no charges. However, it must be noted that customers must have at least £250 in their account in order to switch funds.

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