As the cost of living rises and we all search for ways to make our money go further, you may be considering making a withdrawal from your Onshore Investment Bond. But before you make the decision, it’s worth seeking advice from your financial adviser, There are many options available to you if you’d like to free up some money from your Onshore Investment Bond.
These include utilising your 5% tax deferred withdrawal allowance, or making a full or partial surrender, depending on your financial position and personal circumstances. HSBC is unable to provide financial advice, but your adviser can guide you through the options to help you to make the best decision to suit your needs as utilising your Bond to free up money may not be the best option for you. Please note that making a withdrawal or surrender from your Onshore Investment Bond may reduce the total value of your Bond over time. See example below.
Assuming a 5% annual return on an investment of £100,000
|Scenarios||After 5 years||After 10 years|
|£1,000 withdrawal per year||£122,103||£150,312|
|£5,000 withdrawal per year||£100,000||£100,000|
|£10,000 withdrawal per year||£72,372||£37,111|
This table is for illustration purposes only and assumes that withdrawals are made at the end of each year. If the withdrawal is made sooner, it will have a greater impact on the final value. Returns and impacts are indicative only and could be higher or lower than what is shown.
The rising cost of living is putting huge pressure on household budgets. But there are other ways to reduce your spending that could help you.
For example, HSBC UK has tips on how to save money, alongside a wide range of resources available to help. Click on the links below to find out more:
Before making any decisions regarding your bond, we recommend you discuss first with your financial adviser.
Alternatively, if you don’t have a financial adviser or you have any questions regarding your HSBC Onshore Investment Bond, would like a current valuation, want to make a change to your investment, or make a complaint, our Customer Support Team is available to help. Please call: 0345 603 9164, 9am to 5.30pm, Monday to Friday, (excluding public holidays)