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Prudential Investment Bond

Your Prudential Investment Bond is designed to provide you with medium to long term (5 to 10 years or more) capital growth. It replaces the Prudential Savings Account.

Contents

  1. How your investment bond works
  2. Managing your bond
  3. Understanding your options
  4. Things to consider
  5. Getting financial advice
  6. Next steps

How your investment bond works

Both the Prudential Savings Account and Investment Bond accept a mix of regular and one-off payments. They invest in the With-Profits Fund and include a small amount of life and terminal illness cover.

Managing your bond

We can help, whether you're looking to

  • top-up your bond
  • take a lump sum (full or partial cash-in)
  • set up regular withdrawals, or
  • change your regular withdrawal amount.
Before making any changes to your bond:
  • Please make sure you understand your options and how they might affect your plan. Because once you've told us what you'd like to do, it may not be possible to change your mind.
  • We recommend you get financial advice. See ‘Getting financial advice’ for more information about this.
  • Please remember that your product is designed to be a medium to long term investment, so 5 to 10 years or more.
  • Remember, the value of your investment can go down as well as up, so you might not get back the amount you put in. 

Manage your plan online

The quickest and easiest way to access information about your Prudential product, manage it, or to make changes to certain personal information, is through our Online Service. Registering is quick and easy.

Register for our Online Service

Already registered? Access your product details, update your information and message us directly using our Online Service.

Log in

Understanding your options

You can top-up your bond at any time.

You can

  • fully cash-in your bond.
  • cash-in part of your bond.

  • You can’t set up regular withdrawals while making regular payments.
  • Access to regular withdrawals may depend on how much you’ve paid in and when.
  • Where regular withdrawals are available, limits may apply to how much you can withdraw.
     

Please contact us to find out more.     

Things to consider

If you're thinking about making changes to your plan, here are some key points to keep in mind. 

  • It may create a tax liability (see ‘Tax’ section below).
  • It could affect your Personal Allowance and entitlement to tax credits.
  • Your plan may be closed if the value falls below £1,000.
  • Life and/or critical illness cover (if included) won’t be affected.
  • A Market Value Reduction (MVR) might reduce the value of withdrawals.
     

  • You may face early cash-in charges.
  • Consider setting up regular withdrawals instead.
     

  • The minimum regular withdrawal is £50.
  • How much and how often you want to withdraw.
  • When you want withdrawals to start.
  • Cashing-in part or all of your plan instead.

Whether taking a lump sum from your plan or making regular withdrawals, there could be tax implications. Whether you'll need to pay tax depends on 

  • how much you take out
  • when you take it
  • your personal tax situation.
     
Making regular withdrawals

You can withdraw up to 5% of your original investment each year for 20 years without immediate tax liability. If you don’t use the full 5% in a year, you can carry it forward. Taking more than this could lead to a tax liability.

There’s more information in our guide to tax on your investment bond.

Tax rules can change, you may want to seek advice.

Getting financial advice

If you’re making an important financial decision, or thinking about your longer term financial health, then we recommend you get financial advice. 

  • You should speak to your financial adviser if you have one.
  • If you don’t have an adviser, you can search for an independent financial adviser by visiting unbiased.co.uk or by calling them on 0800 023 6868.
  • You could speak to M&G Advice. Whether it's about financial planning, accessing your pension, making sure you get the most from your tax allowances or protecting your loved ones; whatever your financial goals – we can help.

Next steps

If you’re thinking of making changes to your plan, including adding more money, we always recommend you speak to your financial adviser. They can help you understand if making changes is right for you and fits with your aims and circumstances. If you don’t have a financial adviser, you can find one at unbiased.co.uk

Using an adviser means the Financial Ombudsman Service offers you protection against the advice they give you. If you go ahead without advice, you’ll be taking responsibility for your own choices and how your money is invested. Whether you get advice or not, if you feel you haven’t been treated fairly, you can refer any matter to the Financial Ombudsman Service. They help settle individual disputes between consumers and businesses providing financial services.

Please complete the Top-Up Application Form and send this to us along with your payment.

Please call us on 0345 640 1000 (or +44 178 644 8844 from abroad) if you're wanting to

  • amend your payments
  • withdraw a lump sum from your bond
  • set-up or change a regular withdrawal.
     

We may record your call for training and quality purposes. To learn how we use your personal data, visit the My Data page.