LifePlan Investments
Fixed Rate Bonds
A fixed interest rate for a defined investment term
When planning retirement income, it helps to understand when payments are due and how they are calculated. A fixed-rate bond sets out an interest rate and payment terms at the outset, giving you a schedule to consider alongside your other income.
LifePlan Investments helps you explore bond options available through our service. We explain the issuer, investment term, interest arrangements and costs before you decide whether to take the next step.
How a conventional bond works
When you invest in a conventional bond, you lend money to its issuer. The terms normally provide for interest, known as the coupon, and repayment of the bond’s face value on a specified maturity date, subject to the issuer meeting its obligations.
“Fixed-rate” refers to the interest rate set in the terms. We explain how it is calculated, when payments are due and whether the issuer can repay the bond early. Your overall return also depends on the amount paid and any charges.
The details we help you understand
- The legal issuer and the bond’s repayment terms.
- The fixed interest rate, calculation basis and payment dates.
- The investment term and any early repayment provisions.
- Minimum investment, currency and applicable charges.
- Access arrangements and the risks of the particular bond.
Consider the role in your retirement finances
A bond’s payment schedule may be relevant when considering how to supplement existing retirement income. We discuss it alongside the income you already receive, the savings you need to keep accessible and the period for which you can commit money.
Understand the different types of bonds
The word “bond” can describe different products. Some bonds offer no capital protection. Any protection depends on the particular product, its conditions and the organisation providing it. A fixed interest rate alone does not protect your capital.
Book a bond consultation
Book a consultation with one of our advisers. We will explain the different types of bonds, their interest and repayment terms, and what protection, if any, applies, so you can consider the options in relation to your retirement plans.
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