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Prudence Bond

Your Prudence Bond (also known as the Prudence Managed Bond) is a single premium investment bond designed to provide you with medium to long term capital growth. 
 

It's no longer open to new customers, but you can still top-up your bond.

Contents

  1. How your investment bond works
  2. Managing your investment bond
  3. Understanding your options
  4. Things to consider
  5. Expected Growth Rates for the PruFund range of funds
  6. Getting financial advice
  7. Next steps

How your investment bond works

An investment bond is a lump sum investment intended to be held over the medium to long-term (five to ten years or more). Bonds are usually split into a number of segments, giving you options when you want to access your cash.

Managing your investment bond

We can help, whether you're looking to

  • top-up
  • take a lump sum (full or partial cash-in)
  • change (switch) the funds your bond is invested in
  • set up regular withdrawals, or
  • change your 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 five 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 switch your money between funds at any time.

You can

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

You can set up or change regular withdrawals.

Some bonds offer alternative withdrawal options.

  • Distribution Bonds allow you to withdraw the distribution income.
  • If your plan includes With-Profits investments, you may be able to match your regular withdrawals with any annual bonus added to your plan.
     

Please contact us to find out more.

Things to consider

Some key points to keep in mind that may influence your fund selection.

Your personal investment profile
Fund-specific considerations
  • Switching out of the With-Profits Fund could result in a Market Value Reduction (MVR), reducing the amount you receive.
  • There may be a charge to switch funds.
  • Charges may differ between funds.
     
Timing and processing
  • Some switches are actioned straight away, others may take place 28 days after we receive your instruction.
  • In exceptional circumstances, your switch instruction could be delayed by up to six months - we’ll let you know if this applies to you.

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

Withdrawal preferences

Choose how much to withdraw. This could be

  • a fixed amount
  • a percentage of the current value
  • a percentage of the original sum invested.
     
Taking a lump sum (full or partial cash-in) or setting up regular withdrawals
  • It may create a tax liability (see ‘Tax’ below).
  • It could affect your Personal Allowance and entitlement to tax credits.
  • Withdrawals or cashing-in from the With-Profits Fund may result in a Market Value Reduction, which could reduce the amount you receive.
  • You may face early cash-in charges.
  • Some bonds limit the amount you can take out through regular withdrawals.
  • If you’re invested in one of the PruFund Protected Funds, any withdrawals will reduce your guaranteed amount.

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

  • your personal tax situation, and
  • the timing and amount of your withdrawals.
     
Taking a lump sum (full or partial cash-in)

When cashing-in all or part of your bond, you can

  • cash-in whole segments, or
  • spread the amount equally across a number of segments.
     
Making regular withdrawals

You can withdraw up to 5% of your original investment each year 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.

 

Expected Growth Rates for the PruFund range of funds

Expected Growth Rates (EGRs) reflect our view of how each PruFund fund will perform over the long term (up to 15 years). Rates are reviewed every three months to reflect changes in long‑term outlook—meaning your EGR may go up or down on a quarterly basis.

Our PruFund range of funds page shows the current Expected Growth Rates (EGRs) for each PruFund fund.

The value of an investment can go down as well as up and the value in the future may be less than the amount invested. For the range of PruFund funds, what you receive will depend on the value of the underlying investments, the Expected Growth Rates as set by the Prudential Directors, our charges, the smoothing process, if there is a guarantee, and when you take your money out.

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 Additional Investment Application Form and send this to us along with your payment.

The easiest way to withdraw a lump sum (full or partial cash-in) from your bond is through our Online Service. You can do it at a time that suits you. Just log in or register, select the bond you’re looking to withdraw money from, and follow the instructions to make a withdrawal.

Once you've told us what you'd like to do, you can't change your mind, so it's important to make sure you understand all your options and the impact of any changes you make.

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

  • set up or change regular withdrawals, or
  • switch the funds you're invested in.
     

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