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The National Friendly with profits bond offers.
Ability to invest a lump sum from £1,000 to £1,000,000.
Applications can be made by anyone between
16-79.
You can take out a National Friendly bond as an individual or as a couple.
Your money will be invested in their
with-profits fund. This fund invests in assets such as commercial property, company shares, fixed interest securities
such as company and UK government bonds, as well as cash.
With profit bonds should be considered as a long term investment
and although you can cash in the bond, fully or partially, at any time. it is recommended by them that your
investment should be for a minimum of 5 years and, ideally, for at least 10 years. If you cash it in or withdraw part
of your original investment within the first five years, there will be a penalty charge and you could get back less than your
original investment.
The bond has built-in life cover which means should you die death, National Friendly will pay
out a lump sum that is either 101% of your original investment (adjusted for any partial withdrawals that you
may have made) or the sum assured plus bonuses, whichever is the higher amount.
A penalty charge applies if you
cash in your bond within the first five years. In the first year, this corresponds to 5% of the bond value. The charge then
gradually decreases to become 1% in the fifth year.
According to moneyfacts up to the 01/11/2009 this was one
of the best perfoming with profit funds bonds over 5 years and over 5 years a £10,000 investment would now be
worth £11,923.80. (but remember past performance does not mean that future performance of the bond will be the
same.)
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