Income bonds are a fantastic way of providing an income over a fixed period of time whilst protecting the original capital the investor has invested. The Income can be either fixed or variable depending on the bond that you opt for.
Please read our general investment and savings product disclaimers
Structured Investment Products are promoted by Fair Investment Company Limited, Fair Investment Company Limited is Authorised and Regulated by the Financial Services Authority.
† Income payments are dependent upon the FTSE 100 Index
†† Guaranteed income payments.
††† Regular income payments, provided FTSE 100 does not halve at any time during the investment term.
* Target yield. variable & not guaranteed.
** This distribution yield reflects the amounts that may be expected to be distributed over the next twelve months as a percentage of the mid-market price of the fund as at 30/06/2009. This yield is variable and not guaranteed.
*** Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund as at June 2009.
Guaranteed income bonds are offered by institutions and pledge to pay a fixed income at agreed points (usually twice a year) to the bond holder. Your capital is Guaranteed up to 90% with no upper limit on the amount invested should the organization issuing the income bond fall into administration. This protection is far higher that exists for savings banks.