PMAS Guaranteed Investment Bond

Product information

The Guaranteed Investment Bond protects your lump sum and gives you the opportunity to take advantage of the potentially higher returns of stock market related investments.

Your money is invested in the Police Mutual Life Fund – an established investment fund designed to help your money grow over the medium to long-term, typically at least five years.

The fund is managed by a team of investment professionals, to take advantage of a wide spread of different investment types, such as shares, property, bonds and cash.

The Police Mutual double guarantee

Your money is automatically protected by the Police Mutual double guarantee:

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

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

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

The double guarantee is applied on each fifth anniversary
for as long as you hold your investment. It is important you remember that the value of your investment may go up and down between the five-year guarantee points.

An example

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

	You decide to invest £15,000 into the Guaranteed Investment Bond
	Over the first five years, investment conditions are good and the value of your Bond increases to £18,900*
	On the fifth anniversary we promise to lock-in that growth and increase your guaranteed amount to £18,900*
	Over the next five years, investment conditions prove to be less favourable and the value of your investment falls to £17,250
	On the tenth anniversary, we promise to make up the shortfall and increase the value of your investment back up to £18,900*, the amount we locked-in on the fifth anniversary

GIB double guarantee graph

*This assumes investment growth of 6% per year. Please refer to the illustration in the charges section in the Key Features document for more details.

Your investment will continue to benefit from the double guarantee every five years, until you decide to withdraw your investment.

It is important to remember, that as with any stock market related investment, there is no guarantee that the value of your Bond will rise.

Making withdrawals

You can take out money whenever you need to as long as you leave £500 invested in your Bond. You can also cash in your Bond at any time, but to give your money the opportunity to benefit from potential growth, you should aim to leave it invested for at least five years.

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

Flexibility for income

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.

The Guaranteed Investment Bond and tax

As tax has already been paid on the underlying fund, you wont have to pay any basic rate income tax or capital gains tax on your returns.

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.

Limits

You can investment from £1,000 to £250,000
Additional investments of £1,000 can be made at any time by starting new Bonds
The minimum income payment you can receive is £50
At least £500 must be left in the bond after any withdrawal
The minimum age you can invest from is 16 and the maximum is 85

How to apply

Before applying make sure you read Key Features document and frequently asked questions page.

You can:

Apply online
Call us on 0845 88 22 999
Print out an application form and return to the freepost address on the form along with your cheque

It will take no more than ten minutes to apply and if you wish to receive an income from your investment, you will need to have your bank details handy.