5-Year Guaranteed Investment Bond
Secure your future with a 5-Year Guaranteed Investment Bond. Stable returns, peace of mind.
FSCS Protected
100%
Invest with confidence: Guaranteed growth for five years
A 5-Year Guaranteed Investment Bond is a type of savings product where you lock away a lump sum of money for five years, and in return, you receive a fixed rate of interest that does not change for the term. These bonds are designed for savers who want certainty about the return on their investment and do not need immediate access to their funds.
The 5-Year Guaranteed Investment Bond is designed for individuals who have a lump sum to invest and do not require regular access to their money for at least five years. It is ideal for those who are looking for stability in their returns, as the interest rate is locked in for the duration of the term. It provides an opportunity to protect your capital while earning a guaranteed return.
- Guaranteed interest rate: You lock in a fixed interest rate for the full term, so you know exactly how much you’ll earn by the end of five years, providing certainty and making financial planning easier.
- Protection from rate changes: If interest rates fall during your term, your return remains unaffected.
- Low maintenance: Once you deposit your lump sum, there’s no need to monitor or manage the account; your money grows with no further action required.
- Security: Your funds are protected by the Financial Services Compensation Scheme (FSCS) with no upper limit.
You receive annual gross interest, which is guaranteed if you invest for five years. The interest compounds over the five years, so each year the interest is added to the investment and the previous accrued interest. The total interest is equivalent to an overall return over the 5 years.
You can open a 5-Year Guaranteed Investment Bond with Unity Mutual and deposit a lump sum between £5,000 and a maximum of £250,000.
At a glance
Invest between £5,000 - £250,000 per bond
Fixed five-year term
4.33% AER / Gross* offering 21.66% return over the full term
2nd Life available (optional)
Early withdrawal available (reduced return)
100% covered by the Financial Services Compensation Scheme (FSCS) (no upper limit*)
Available for UK Residents aged 18+ only
*What is AER? / How is interest calculated?
Interest is calculated annually and paid at the end of the fixed term. Each year, interest is accrued and added to your balance for calculation purposes (known as compounding), meaning you earn interest on both your original deposit and any interest already accrued.
The Annual Equivalent Rate (AER) illustrates what the interest rate would be on an annual basis, allowing you to compare products. As interest is compounded annually and paid at maturity on our bonds, the AER is the same as the Gross rate.
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With over 200 years of heritage as part of the Oddfellows, Unity Mutual offers reliable, well-regulated financial products.
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UK-based support and a wide range of savings, investment, and protection products make managing finances simple and personal to your needs.
How to apply
Step 1: Choose your bond
Select the Guaranteed Investment Bond term that suits your savings goals.
Step 2: Complete your online application
Click ‘apply now’ to fill out your details on our online form.
Step 3: Send your deposit
In the application process we'll provide you with the bank details to send your deposit to, or alternatively, send a cheque.
Step 4: Wait for your documents
Once we've received the deposit, we will open your Guaranteed Investment Bond and send your welcome pack out in the post.
No. A 5-year Guaranteed Investment Bond has a fixed interest rate for the full 5-year term, set at the time you open the bond. This means the rate will not change during the term. If you choose to withdraw early, a reduced rate of return will apply, as outlined in the terms and conditions.
The product is designed to run until maturity, However, Unity Mutual understands things can change, and as such, unlike other providers, we will allow you to withdraw your investment with a reduced return. Please refer to our product Terms and Conditions for full details.
The growth on your investment is added to your investment after the fixed term is completed. On opening your Guaranteed Investment Bond, you will be issued with a ‘Certificate of Investment’. This serves as proof of your investment and will include details including investment amount, interest rate and maturity date. This can be useful for your tax reporting and financial planning. Please contact our customer service team if you need a new copy.
There are no direct account or management fees on our fixed-rate bonds, however if you withdraw before the end of your fixed term, an early withdrawal interest penalty will apply. The capital (original investment) would not be reduced, but you would receive less interest than the agreed fixed rate.
Please review the document below to confirm that the 5-Year Guaranteed Investment Bond is suitable for you.
Need to speak to someone about our investment bonds?
Our friendly customer service team is available to discuss any questions.
Or email insure@unitymutual.co.uk
If you need financial advice
If you're unsure whether a product is right for you, it's worth speaking to an Independent Financial Advisor (IFA).
You can find a local advisor at unbiased.co.uk. Keep in mind that financial advice may come with a fee, so be sure to ask about costs before receiving advice.
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