The most efficent investment bond

Investment bonds can be more tax efficient than deposit accounts for higher-rate taxpayers but should be avoided by non- and starting-rate payers as tax automatically deducted cannot be reclaimed

This article looks at investment bonds and reviews the pros and cons of investing in them for different investors. An investment bond is a bond issued by a life insurance company. There are several different types of life bond on offer including guaranteed income bonds and unit-linked bonds. Guaranteed income bonds are one of the oldest and simplest forms of investment bond on offer. The insurance company offers a fixed rate for a specific term and these can often provide better returns than an equivalent bank or building society deposit account. Unit-linked bonds have similar characteris...