Capital investment bonds

A capital investment bond aims to provide investors with a low risk flexible environment that gives your capital the potential to grow over the long term. Most capital investment bonds are designed to grow over the medium and long term and should be help for at least a five year term.

An advantage of a capital investment bond is that investors are likely to make money during any upturn in the investment market but are insulated against falls in the value of stocks. Capital investment funds are also flexible with a huge variety of different funds managed by separate fund managers who have tailored investment strategies designed to suit different types of investors.

Capital investment bonds are designed to allow you to make new deposits and withdrawals throughout the investing term. It is important that you check the individual terms and conditions of any capital investment bond that you wish to invest in as some providers charge for making withdrawals and the charges for managing the bond can vary.

	Central bank warns of £120bn capital shortfall The Bank of England has warned that the biggest UK banks and building societies need to plug a £120 billion capital shortfall by the end of 2018.
	Nationwide and Co-op move to address capital shortfalls The Nationwide Building Society has been given a two-year reprieve to fill its capital shortfall, whilst the Co-op is to review how it came to have a £1.5 billion deficit.
	Vince Cable: Bank of England acting like 'capital Taliban' Vince Cable has warned that the “Taliban” approach of the Bank of England to the capital levels of banks is reducing lending to small businesses and hurting the economic recovery.
	Co-op presents capital plan to Bank of England The Co-operative Bank has denied it will need a taxpayer bailout after Moody’s cut its credit rating to junk status prompting the resignation of chief executive Barry Tootell
	PRA warns UK banks need to hold £27bn more capital Bank lenders in Britain must boost the levels of capital they hold if they want to avoid another financial crisis, says the Prudential Regulatory Authority.