The Capital Investment Bond is a unit-linked, single-premium life assurance plan that invests in a range of cash investments and aims to provide growth and security.

The product is available on either a single-life or joint-life basis for investors aged between 18 and 80, but it is not suitable for non-taxpayers.

The new bond will offer a variable net rate of 3.85 per cent (assuming nil commission), equivalent to a rate of 5.13 per cent for higher-rate taxpayers and 4.81 per cent for basic-rate taxpayers.

The Capital Investment Bond is designed to complement Cardif Pinnacle’s existing range of guaranteed income and growth bonds, and its Flexible Asset Bond.

Kathy Byrne, head of group investment business at Cardif Pinnacle, says, ‘In the current economic climate, it is clear that investors have increased concerns regarding the security of their cash investments. As such, we felt this was a good time to launch a simple product that provides wider opportunities for investors to access a competitive return, alongside the tax deferral and compensation arrangements afforded by a life assurance bond.

‘Cash held in banks and building societies is often not considered by investors and this product provides a potential alternative.’

The Capital Investment Bond will be available through Independent Financial Advisers from 21 July and has a minimum investment of £20,000. For more information, visit www.pinnacle.co.uk/investments.