Distribution bonds

A distribution bond is designed to pay out a regularly distributed income with a minimum effect on your original investment. A distribution bond is invested in a mix of investment types such as UK equities, government bonds and commercial property.

This provides the investor with a strong steady income flow from reliable investments as well as the long term capital growth potential that comes with investing in equities. By ensuring your income is not wholly invested risky equity stocks and shares they offer the chance of high returns but also ensure your income remains secure through other more stable forms of investment.

Distribution bonds are also flexible in that they can be used solely for the purpose of long-term capital growth while retaining the option of withdrawing income further down the line.
However, moving or accessing your distribution bond may incur fees depending on the company, and the annual management charge of your bond will also vary so it is important to shop around and thoroughly compare terms and conditions.

	The best savings bonds on the market Savings bonds are a great way of maximising the rate you can get on your savings in a period of low interest rates. However, there are pitfalls, as Kate Saines explains.
	Yield on Spanish medium-term bonds leaps to more than 5% The yield on Spanish medium-term bonds increased in a sale today as it was confirmed that the country has entered recession amid fears of an escalation in the Spanish banking crisis.
	Monmouthshire BS launches two new savings bonds The Monmouthshire Building Society has launched two new savings bonds. Its one-year bond pays 3.10 per cent and its two-year bond pays 3.25 per cent.
	Santander release savings bonds paying up to 3.70% Santander has launched a tracker bond and a fixed rate bond that pay up to 3.70 per cent gross AER.
	Santander releases new fixed rate and tracker savings bonds Santander has launched two new fixed rate savings bonds that pay up to 3.70% interest. They have also released a tracker bond that offers base rate plus 2.70%.