What’s a Guaranteed Investment Bond?

What’s a Guaranteed Investment Bond – and Why Invest Your Money in One?

Want to grow your wealth in 2025 and beyond? A Guaranteed Investment Bond (GIB) could be the route for you – but what is an investment bond and why might investing your money into one be right for you? In the latest article on the Unity Mutual site, we take a closer look at the savings account and discuss the reasons why people choose to set one up. 

What is a Guaranteed Investment Bond?

If you want to invest a lump sum of money – a GIB (sometimes known as a guaranteed investment bond) could be worth considering.

By investing your funds in an investment bond for two or five years, you are guaranteed a return. It’s safe too – and you’ll have complete peace of mind while your funds accumulate.

What’s the interest rate on the Guaranteed Investment Bond?

When you invest your funds in an investment bond for a period of five years with Unity Mutual, you’ll receive an interest rate of 4% per annum gross. That’s equivalent to an overall return of 21.66% over the five years. If you choose the two year option, you’ll receive an interest rate of 4.10% per annum gross. That’s equivalent to an overall return of 8.37% over the two years.  

What are bonds?

There are of course different types of bonds, with different terms and benefits, but they usually provide a way to grow your investment over a longer timeframe.

How does the Unity Mutual Investment Bond work?

When you open an investment bond with Unity Mutual, you will receive a fixed rate of interest – and this is guaranteed for the fixed term.  Any withdrawals of your investment before the maturity date would significantly reduce your return.

Compounding over the fixed term, each year, interest is added to the investment as well as the previously accrued interest. 

Is my money safe in a Guaranteed Investment Bond?

Your money is 100% protected under the FSCS when you take out an Investment Bond with Unity Mutual. There is no upper limit as the bond is classed as a life assurance product.

Who is an investment bond for?

If you don’t need to access your lump sum for a fixed term (2, 3 or 5 years), but you’d still like to see your money grow, an investment bond could well be an option for you. Some people will choose not to go down the route of investing on the stock market, for example, due to the fact that doing so can mean uncertainty surrounding the growth of their funds.

With an investment bond, can you withdraw money anytime?

With Unity Mutual Investment Bonds, if you need your money unexpectedly, you can withdraw it any time during the fixed term. However you would receive a reduced level of interest based on the number of years you have invested your funds.   Not all providers offer this, so it’s important to check when considering different types of bond.

Is the return of my lump sum guaranteed any time?

If you die during the fixed term, your capital lump sum will be paid to your estate if your Investment Bond is with Unity Mutual. This is alongside any interest you’ve earned, based on the number of years you invested. Again, it’s important to check with other providers as they may differ.

How can I find out more about our Guaranteed Investment Bonds?

Want to know more about our Investment Bonds? We’re here to help – and, again, while we can’t advise whether this is the right option for you, we can provide all the facts to help you make an informed decision. 

Terms and conditions apply