The Capital Investment Bond Rate available as at Jan 06 2009 is 1.36% net*
The table below details the equivalent rates for both Basic Rate and Higher Rate taxpayers.
| Annual Net Rate* |
Gross Equivalent: Basic Rate Taxpayer |
Gross Equivalent: Higher Rate Taxpayer |
Equivalent Net Rate: Higher Rate Taxpayer |
| 1.36% |
1.70% |
1.81% |
1.09% |
An example illustration of what you might get back
This illustration is an example only.
The amount you get back will depend on the amount you invest, the prevailing rates during the term of your Bond and how long you choose to invest for.
The growth rate is based on the rate detailed above. The actual growth rate may be more or less than this and this is illustrated by using a range of rates that are 1% higher and 1% lower than the published rate.
| Your Investment |
Rate |
Total Withdrawals |
Value After 10 Years |
| £50,000 |
0.36% |
£0.00 |
£51,829.44 |
| £50,000 |
1.36% |
£0.00 |
£57,231.62 |
| £50,000 |
2.36% |
£0.00 |
£63,135.38 |
The growth rates quoted above are lower than those usually quoted by insurance companies in their illustrations. This is because the Capital Investment Bond has a much lower risk profile than many products and, as a consequence, a lower expected return.
All growth rates quoted are net of tax at the savings rate of 20%. Tax cannot be reclaimed by non-taxpayers.
The above rates are examples and cannot be guaranteed. The amount you get back will depend on the performance of your investment and the tax treatment of your investment. You could get back more or less than these amounts.
Do not forget that inflation would reduce what you could buy in the future with the amounts shown.
* The interest rate assumes that tax is paid at the savings rate of 20% and commission paid at a rate of 0.25%
What happens if you need your money before this?
The table below shows what you might get back if you choose to invest for a shorter period. The growth rate used is based on the above information. This example assumes that the rate of return remains constant throughout the period of the investment, however, in practice rates may vary throughout this period and what you get back may be more or less than this.
| At end of |
Investments to date |
Effect of deductions to date |
What you might get back |
| The Early Years |
| 1 Year |
£50,000 |
£546 |
£50,660.00 |
| 2 Years |
£50,000 |
£1,092 |
£51,349.25 |
| 3 Years |
£50,000 |
£1,658 |
£52,047.87 |
| 4 Years |
£50,000 |
£2,245 |
£52,755.99 |
| 5 Years |
£50,000 |
£2,854 |
£53,473.75 |
| The Later Years |
| 10 Years |
£50,000 |
£6,245 |
£57,211.62 |
- The figures in the tables are examples and are not guaranteed
- What you get back will depend on the interest rates during this period and the tax treatment of your investment
- You could get back more or less than this
- Do not forget that inflation would reduce what you could buy in the future with the amounts shown
What are the deductions for?
- The deductions include the cost of life cover, commissions / remuneration, expenses, charges, actual or potential tax liability, any surrender penalties and other adjustments. Deductions are made before growth rates are applied to your investment.
- The last line shows that over the illustrated term of the Bond the effect of total deductions could amount to £6,245.23.
- Putting it another way, if the growth rate were to be 2.41%, which is not guaranteed, this would have the effect of reducing it to 1.36% a year.
How much will advice cost?
Your Adviser will give you details about the cost. The amount will depend on the size of your investment. It will be paid for out of deductions.
IMPORTANT INFORMATION
This illustration is an example only and forms part of the Capital Investment Bond Key Features Document. Further information can be obtained from Cardif Pinnacle on request or your Financial Adviser
Pinnacle Insurance plc is authorised and regulated
by the Financial Services Authority |
