Investment Bond: FAQs
Are investment bonds covered by the FSCS?
Yes. Investment bonds, sometimes called ‘guaranteed equity bonds’, are covered by the Financial Services Compensation Scheme (FSCS).
Are there any charges involved with investment bonds?
Some investment bonds may carry the following charges:
- Set-up fees – A cost to set up the account, this may be more if you opt for a bond that guarantees you won’t end up with less than your original investment.
- Switching charges – Most investment bond providers will let you change funds easily, but you could be charged a switching fee.
- Surrender charges – If you decide to withdraw money from your bond in the first few years of its term, you may have to pay a surrender charge.