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 top ten fixed rate savings bonds for 2013 We countdown the highest paying fixed rate savings bonds whether you are looking to save for one year or up to five years.
	Virgin Money launch new fixed rate cash Isas and savings bonds Virgin Money has launched a range of fixed rate cash ISA and savings bonds products paying up to 3.0 per cent.
	Skipton's fixed rate savings bonds and cash ISAs pay up to 3.0% The Skipton Building Society has upped the rates on its fixed-term savings bonds and launched a new range of fixed rate cash ISA products.
	Leeds BS unveil fixed rate savings bonds paying up to 2.50% The Leeds Building Society has unveiled a range of new fixed rate savings bonds that offer investors a higher rate of up to 2.50% or 2.27% if they want to receive a monthly income.
	Co-op offers fixed rate savings bonds paying up to 3.0% The Co-operative Bank has unveiled a range of fixed rate savings bonds, available from between one to three years, paying up to 3.0 per cent.