Your Police Mutual. Owned by you. Run by you.

When you open a Guaranteed Investment Bond, your investment is automatically protected by the Police Mutual Double Guarantee.

The Double Guarantee is applied on each fifth anniversary for as long as you hold the investment.

Guarantee 1

If the value of your investment falls because of unfavourable investment conditions, we promise to restore it to its original value after five years.

Guarantee 2

If it grows, we promise to lock-in this growth every five years

What does this mean?

If you decide to cash-in on a guarantee date you will receive at least your guaranteed amount - including any locked-in growth.

An example

The example below shows how the double guarantee can help to protect your investment.

A You decide to invest £15,000 into the Guaranteed Investment Bond

B Over the first five years, investment conditions are good and the value of your
    Bond increases to £17,800

C On the fifth anniversary we promise to lock-in that growth and increase your
    guaranteed amount to £17,800

D Over the next five years, investment conditions prove to be less favourable and
    the value of your investment falls to £16,300

E On the tenth anniversary, we promise to make up the shortfall and increase the
    value of your investment back up to £17,800, the amount we locked-in on
    the fifth anniversary

Figures are for illustrative purposes only

This assumes investment growth of 5% per year and is an illustration only. Please refer to the illustration in the charges section in the Key Features document for more details. It is important to remember that, as with any stock market related investment, there is no guarantee that the value of your investment will rise and it may go up and down between the five-year guarantee points. If you cash-in between these points you could get back less than you have invested.

Your money is invested in the Police Mutual Life Fund. The Life Fund invests in a mix of assets such as company shares, property, bonds (which are a type of loan to governments or companies) and cash.

The Life Fund is managed by a team of investment professionals who aim to take advantage of the performance of these different assets.

You can withdraw part of your investment, without charge, whenever you need to, as long as you leave £500 invested. The minimum you can withdraw is £50.

You should remember that if you make a withdrawal, your Double Guarantee will be affected – see the Key Features document for more details.

You can also cash-in your investment at any time without charge. But to give your money the best opportunity to benefit from potential growth, you should aim to leave it invested for at least five years.

If you do cash-in your investment between the five-year guarantee points you could get back less than you have invested.

The Guaranteed Investment Bond gives you the flexibility to receive an income from your investment and is paid in the form of regular partial withdrawals.

The minimum you can take as an income is £50 per payment and at least £500 must be left invested in your Bond. If you choose to receive an income your Double Guarantee will be affected - see the Key Features document for more details.

If you wish to receive an income from your investment, you can select this option when you apply.

Generally you won’t have to pay any basic rate income tax or capital gains tax on your returns if you are basic rate tax-payer.

Any income you take is treated by HM Revenue & Customs as a regular partial surrender. They allow you to take up to 5% of the initial investment each year for up to 20 years without paying income tax.

If you are a higher rate taxpayer, or become one in the future, you may have to pay tax – see the Key Features document for more details. Please remember that tax legislation may change in the future.

You can open a Guaranteed Investment Bond with a one-off lump-sum payment of at least £1,000. The maximum you can invest is £250,000 and you make additional investments of at least £1,000 at any time by starting new Bonds.

Each new investment you make will receive its own Double Guarantee.