A distribution bond is designed to pay out a regularly distributed income with a minimum effect on your original investment. A distribution bond is invested in a mix of investment types such as UK equities, government bonds and commercial property.
This provides the investor with a strong steady income flow from reliable investments as well as the long term capital growth potential that comes with investing in equities. By ensuring your income is not wholly invested risky equity stocks and shares they offer the chance of high returns but also ensure your income remains secure through other more stable forms of investment.
Distribution bonds are also flexible in that they can be used solely for the purpose of long-term capital growth while retaining the option of withdrawing income further down the line.
However, moving or accessing your distribution bond may incur fees depending on the company, and the annual management charge of your bond will also vary so it is important to shop around and thoroughly compare terms and conditions.
- Leeds BS unveil fixed rate savings bonds paying up to 2.50%
- Co-op offers fixed rate savings bonds paying up to 3.0%
- The top ten fixed rate savings bonds for 2012
- Nationwide increases rates on savings bonds
- The best savings bonds on the market
- Santander releases index linked savings bonds
- Santander launch range of savings bonds paying up to 3.50%
- Monmouthshire BS launches two new savings bonds
- Santander release savings bonds paying up to 3.70%
- Plunging sales and soaring bonds push Spain closer to bailout