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

Want to grow your wealth in 2023 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. Read on…

What is a Guaranteed Investment Bond?

If you want to invest a lump sum of money – and in a tax-efficient way – a GIB (sometimes known as a guaranteed equity bond) could be worth considering.

By investing your funds in an investment bond for 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 a GIB?

These can vary, but 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.

A reliable way to grow your wealth, it could be ideal for those who are feeling disheartened by incentive schemes (or even retention offers) from other bank accounts or savings pots.


What are bonds?

For those who want to begin investing, bonds can provide a way to grow money over a longer timeframe.


How does the Unity Mutual GIB work?

When you open a GIB, you will receive annual gross interest – and this is guaranteed providing you invest for five years.

Compounding over the five years, the interest is able to accumulate as your funds grow. Each year, interest is added to the investment and the previous accrued interest.


Is my money safe?

Your money is 100% protected when you take out a GIB with Unity Mutual.


Who is an investment bond for?

If you don’t need to access your lump sum for five 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.

Wondering if an investment bond like our GIB is right for you? We can’t give you any advice; we can only provide factual information – if you have a question or two about the bond, or want to know more about the specific terms and conditions please do not hesitate to get in touch with our friendly team.


With an investment bond, can you withdraw money anytime?

With Unity Mutual absolutely! If you need your money unexpectedly, you can withdraw it any time during the five years. In this instance, you will receive a reduced level of interest based on the number of years you have invested your funds – and we have compiled a handy table which lays out what you will receive per year of exit.   Not all providers will be the same though, so it’s important to check this.


Is the return of my lump sum guaranteed any time too?

If you die during the five years, your capital lump sum will be paid to your estate if your GIB is with Unity Mutual. This is alongside any interest you’ve earned, based on the number of years you invested. Again, this is detailed in the table linked above.   Again, it’s important to check with other providers as they may differ.


What other accounts are available to me?

Of course, there are plenty more ways to save money – and we have a range of products to choose from here at Unity Mutual.

It doesn’t matter where you are in your savings journey, either – you may want to save a few extra pounds per month or create a nest egg to fall back on.

So, whether you want to put money aside for a rainy day or save for a large purchase (such as a once-in-a-lifetime family holiday, a car or even a property), we have an account that will complement you and your plans. We also offer a variety of savings accounts for children – from a Stocks and Shares Junior ISA to a Tax-exempt Savings Plan – take a look here to get your offspring onto the right foot, financially speaking.


How can I find out more about guaranteed investment bonds?

Want to know more about our investment bond? 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 to all Unity Mutual products; please read and accept our Ts and Cs before signing up for a Guaranteed Investment Bond.

Until next time…


Please remember Terms and Conditions apply to all our products.  You can find these on the Unity Mutual website


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