Investment bonds are opened with a lump sum and once opened allow no further contributions to be made
Investment Bonds offer a number of benefits for investors, providing a regular tax-efficient income of 5% of the original investment along with the potential for capital growth over the long term, plus effective tax planning.
Investment bonds mainly fall into two categories, onshore and offshore. The main difference is their tax treatment. In high-level terms, those onshore are subject to UK corporation tax, which is offset by your provider, while offshore bonds are issued from outside the UK and the returns roll up gross of tax in the funds, apart from Withholding Tax, Offshore bonds may also offer a wider choice of funds.
The value of investments can fall as well as rise. You may get back less than you invested.