Guaranteed Five Year Fixed Rate Bond

A bond that lets you save for the future. Secure our current rate of 5.125% gross for five years, which will pay you 4.1% net of basic rate tax. That’s an impressive 22.25% return over five years – guaranteed!

Metfriendly’s Guaranteed Five Year Fixed Rate Bond lets you save for the future, safe in the knowledge that you’re getting a guaranteed return on your savings at the end of a fixed period of five years. It’s likely that interest rates will be cut soon – so now could be a great time to grab an extremely competitive rate before savings rates fall.

  • Secure our current rate of 5.125% gross* for five years, which will pay you 4.1% net of basic rate tax. That’s an impressive 22.25% return over five years – guaranteed! 
  • Invest between £10,000 and £250,000 per Member
  • Open with one, single payment – no additional contributions can be made
  • Guaranteed annual interest of 4.1% (net of basic rate tax)
  • 5.125% gross equivalent interest rate*
  • Your money is locked away for five years

Below are some examples of the guaranteed returns at the end of five years, based on annual interest of 4.1% (net of basic rate tax).

  • £10,000 invested guarantees £12,225
  • £50,000 invested guarantees £61,125
  • £75,000 invested guarantees £91,688

Paul Grimshare, Metfriendly’s CFO says: Following recent Bank of England base rate decisions and financial market movements, we are closely monitoring our 5-year bond offer and may at short notice take action to change the guaranteed rate. If you’re looking to invest, and want to secure the current guaranteed return, then you should consider acting now.

Consider this product if you want the certainty of knowing exactly what you will get back in five years time, and accept that your money will be locked away for a full five-year term.

Read our FAQs below for more on eligibility and suitability criteria.

APPLY NoW

Want to discuss your options?

Our friendly Member Services Team is always happy to help. Call them on 01689 891454 or email [email protected]

Alternatively book a call back at a time to suit you.

Interested in attending a dedicated lump sum investment seminar? Find out more and book today.

* Gross interest figure based upon internal Metfriendly calculation for information only – please check your understanding with your own tax adviser.

** Metfriendly accepts no responsibility for content on third party websites.

Who can apply for a Metfriendly Guaranteed Five Year Fixed Rate Bond?

If you’re aged over 18, work or have worked for the UK Police Service, or you’re the partner or close relative of such a person, you can open a Guaranteed Five Year Fixed Rate Bond.

You must be resident in the UK. You will be ‘resident’ if you have spent a minimum of 183 days in the tax year of signing the application or you perform duties which by virtue of the Income Tax (Earnings and Pensions) Act 2003 (Crown employees serving overseas) are treated as being performed in the UK, or you are married to, or in a civil partnership with, a person who carries out those duties.

Can other family members apply for Guaranteed Five Year Fixed Rate Bond?

Yes, serving or retired police officers, police staff and their families who want a fixed return on their lump sum investment can apply.  Please see section 2.1 of the Important Information Document (PDF) for more detail on eligibility.

Can I invest in a Bond on a child’s behalf?

No, the applicant must be aged 18 or above and funds will be paid out on maturity to the policyholder. You may choose to invest in a Bond and subsequently gift the proceeds to another person following UK tax laws. If this is the case, you may wish to seek advice from an independent financial advisor. 

Is the Bond suitable for me?

The Guaranteed Five Year Fixed Rate Bond is a life insurance savings plan, which will guarantee to return a 4.1% per year for a fixed term of five years.

This product could be suitable for you if:

  • You are 18 years of age or above
  • You wish to invest a lump sum of between £10,000 and £250,000 for a period of five years.
  • You want to know exactly how much money you’ll get back, guaranteed, in five years’ time.
  • You are happy to lock your investment away for a full five years – this is what guarantees the fixed annual interest rate of 4.1%. You can only access the Bond in exceptional circumstances (please see section 2.5 of the Important Information Document (PDF) for more details).

  • You understand that higher or additional rate taxpayers may be liable for tax on any gains.
  • You want a guaranteed minimum benefit if you die prior to maturity of the policy.
  • If you are unsure about anything at all, including whether you are eligible for this product, please contact our friendly Member Services team on 01689 891454 or email [email protected] 

How much will it cost for advice?

Our priority is to provide products designed to improve your financial security. Our staff are not paid commission, and do not offer or give financial advice.  The cost of providing verbal or written information about this product is included in our overall expenses.

How can I apply for and manage a Metfriendly Guaranteed Five Year Fixed Rate Bond?

You can open a Guaranteed Five Year Fixed Rate Bond online via our website, over the phone or by completing a paper application form. Payment can be made by bank transfer or a cheque made payable to MPFS Ltd.

All online payments and cheques must be received within 14 days of a completed application, after which your application may be cancelled, and you may need to reapply.  Metfriendly reserve the right to withdraw or amend the product prior to policy issue.  

How much can I invest?

The minimum amount you can invest into the Guaranteed Five Year Fixed Rate Bond is £10,000, up to £250,000. You won’t be able to make any additional contributions once you have invested your initial amount. However, you can open additional Bonds subject to the maximum limit of £250,000 per member, irrespective of the number of Bonds you have opened.     

Is it possible for more than one person to transfer money to create the Bond investment? 

Yes, our Member Services team will be able to help.  Contact them on 01689 891454 or email [email protected] to find the best way to set up the Bond.

Should I transfer funds from my ISA?

It is important you understand the features and benefits of available products and consider how they will meet your savings needs.  The details of all of our products are available on our website and our friendly Member Services team is available on 01689 891454 or email [email protected] to discuss your options.

What if I change my mind about opening a Guaranteed Five-Year Fixed Rate Bond? Can I cancel it?

When your application is accepted with us, we will send you a notice to confirm this. From the date of that notice being sent, you will have 30 days in which to cancel your Guaranteed Five Year Fixed Rate Bond and your money will be returned to an agreed account in the name of policyholder.   After 30 days, your investment will be locked away until the end of the five-year term, unless in exceptional circumstances. See “When can my money be accessed?” below.

How will my money grow?

We use your money to invest in a mix of assets that enable us to provide you with a return of your lump sum and the guaranteed growth over the term of your investment. See section 2.4 in the Important Information Document (PDF) for more on what you will receive at maturity.

What are the charges?

Our fees and charges are factored into the returns provided by the bond.

What about tax?

There will be no Capital Gains Tax. Where you are a non or basic rate taxpayer, there will be no Income Tax payable for this plan, however, it is worth noting that you may have to pay higher-rate or additional rate income tax depending on your personal circumstances. Please see section 2.6 of the Important Information Document (PDF) for more detail.

When can my money be accessed?

The Bond is fixed for five years and can only be accessed at Maturity.  Funds cannot be withdrawn during the five-year holding period unless in exceptional circumstances, diagnosis of a terminal illness or on death (see sections 2.5 and 2.9 of the Important Information Document (PDF) for more information).

What happens if I die, or I’m diagnosed with a terminal illness?

Should you die prior to maturity, then a death benefit will be paid to your estate.

If you are diagnosed with a terminal illness*, then the terminal illness benefit will be paid to you.

For more details regarding the level of benefit paid, please refer to section 2.9 of the Important Information Document (PDF).

* A definite terminal illness diagnosis by the attending Consultant where the illness either has no known cure or has progressed to the point where it cannot be cured; and in the opinion of the attending Consultant, the illness is expected to lead to death within 12 months.

Is my investment protected?

Yes. Any money invested with Metfriendly is covered by the Financial Services Compensation Scheme. The maximum level of compensation is currently 100% of the claim with no upper limit (correct at time of publishing – September 2023). The actual level of compensation you receive will depend on the basis of your claim.

‘Very pleased with the service I’ve received to help me save money direct from my salary.’

DC Chris W, SO15

‘I would recommend Metfriendly to everyone.’

Mrs V Thompson, Dagenham

Great opportunity for family members to be offered the same offers as members.

Miss A McLeary, ESB

Very happy with the service. I have a number of policies for myself and my children.

Police Sergeant S Drysdale, DPS Borough Support

‘I have always been pleased with the returns from my Metfriendly policies.’

Mr P Payne, Bordon

‘I’ve used Metfriendly for the last 5 years and recently the money has gone towards a deposit for our house. I will be signing back up next year to help save towards my kids future.’

Mrs A Cooper, Met CC, Bow

‘Hassle-free savings that are started every year on my behalf, without me having to call up.’

 

D.C. R McLaren, Hackney Borough Stations

Good service – always very helpful and informative.

Miss J Coward, South Norwood, London

‘I’ve used Metfriendly for the last 5 years and recently the money has gone towards a deposit for our house which we are moving into next month. I will be signing back up next month to help save towards my kids future.’

 

Amanda Cooper (Met CC, Bow)