Many people with lump sums choose to invest their money. That means injecting the capital received through earnings, inheritance or a redundancy package into stocks, bonds, funds or property. Investment bonds are essentially life insurance policies where you invest a lump sum into a choice of available funds. These funds will carry varying degrees of risk and potential for growth on the original investment. When you cash investment bonds in, the return you receive will depend on how the investment has performed over time.
A Investment Bond is a single premium unit-linked bond, designed for people investing lump sums. To open up this investment bond, you'll need to have at least €5,000 to invest over a minimum of five years. This capital can be invested in a range of funds, with varying degrees of risk and potential return. You can then anticipate a growth on your initial investment, depending on the types of funds you've opted for.