Posts in Category: Finance

What are Offshore Investment Bonds?

Offshore investment bonds are a type of investment that allows a number of different types of assets to be held within the bond such as deposits, cash and investment funds. All the investments that are held in the offshore investment bond are subject to the tax rules of the country where the bond is held, offshore bonds are usually opened in countries that are considered tax safe havens that are considered tax efficient. Any investments that are held inside an offshore investment bond are free to grow almost tax free.

The benefits of investing with limited taxation are of obvious appeal to many investors especially investors who are currently taxed at the highest rate in the UK. Any investment in an offshore bond can benefit from a roll up of interest whereas an investment onshore will have income tax regularly deducted from the total amount.

Offshore Investment Bonds

Things to consider before using offshore investment bonds

Any investment that his held in an offshore bond will be subject to costs, these costs will usually be offset against the gains from investment so you need to be sure that you are able to commit to the investment bond long enough to make sure the roll up of interest offsets any of the additional costs. Simply put you need to make sure that the bond is going to make enough gain to cover costs and still give you a healthy return on investment.

When any money is removed from the offshore investment bond and brought back to the UK then UK income tax at the individual’s highest rate of tax is applicable on any gains. Savvy investors can time the withdrawals from the investment bond at times when they may be subject to a lower tax rate or can transfer ownership of the funds to someone else like a spouse who may be subject to a lower tax rate.

One of the key benefits of investing in this type of bond is the ability to shield funds from the UK tax rate especially in countries with a more competitive rate of tax. Offshore bonds are extremely flexible and the number of different types of investments that can be held is quite broad. Whilst any investments are held inside the offshore bond they are not subjected to any tax as long as they are offshore, investors often take advantage of this and switch between a variety of different types of asset and funds within the bond without any liability of tax.

Should you invest in offshore investment bonds?

Offshore investment bonds will be most appealing to taxpayers that are now subject to tax at the higher rate of 50%. As a rule of thumb any investors should try to take advantage of tax allowances that are available before contemplating investing offshore. Everyone is subject to a CGT or capital gains tax allowance; this is an amount of gain that can be earned before any tax is applied. The CGT rates do not apply for investment bonds as they are governed by income tax amounts so capital gains tax amounts are not allowed to be used. Investing in assets or funds that generate gains that are chargeable against the more favourable CGT allowance is considered a better option over offshore investment bonds.

Just like any other type of investment if you are in any doubt as to whether or not it is the right kind of investment for you then you should seek out independent financial advice.

Offshore Investment Pros and Cons

Offshore investments work by allowing investors to capitalize on financial advantages that are offered outside of their own country. Simply put investors from one country make a corporation in another country, this corporation acts like a shield to the investors accounts protecting them from the higher rates of tax that …

Lump Sum Investments
A lump sum investment is a type of investment opportunity that involves the investment of a lump sum of money at the same time in order to ensure that your invested money is working hard for you. One of the most popular types of lump sum investment involves the use …

Investing in Junk Bonds
This is one of the riskiest investments out there. Your risk is much higher than equities, although the returns can be spectacular. Junk bonds are the lower credit quality firms belonging to the real possibility of imminent bankruptcy. Do not confuse a junk bond with a high yield bond. The …

Emerging bond
The debt of emerging countries has a fairly high risk, similar or even higher than equities. In some countries, legal certainty is very low or nonexistent, so that should be avoided by prudent investors no matter how high the interest they offer, as there is a real risk that do …

Where to Invest?

Where to invest? This question benefit of everyone who cares about his future, and who are or appear periodically cleared funds. For someone standing financial transactions and value for money – a profession, and someone makes a different way and can not decide on those who trust the available funds. To those for whom value for money is not the main kind of activity, calculated this stuff. Today we’ll talk about how to invest money in the bank.

Thus, the most important thing for any investor is making a profit, so you need to invest money. The concept of benefit for his own, but as a rule, its size depends on the labor of the investor, as well as risks.

Consider the case when a person does not have sufficient financial knowledge, but simply wants to invest money and make a profit over time.

The most popular method of investing money is to open a deposit account in a bank. They (banks) to take the investor have surplus funds by a certain percentage of borrowers and offer them loans, thus gaining benefit.


Invest money in the bank – the safest and most appropriate method for those who do not know where to invest money and do not particularly want to be introduced in the financial mechanisms of the state.

The benefit here is obvious: the bank – this is not one man, his speed does not depend on health status or mood of certain individuals, it is – a large financial institution to which your investment will be a small fraction of total assets. If you have an attachment 10, 20 or 50 thousand – an important financial transaction, then the bank – is a familiar everyday process.

At the moment, Ukrainian banks are offering to invest money for various interest rates. In the interest range is in an area 12-20% per annum (depending on the conditions of deposit).

Contributions are different, and various banks in their own name, but the essence are. If you want to invest money and are confident that over a period of time (3 months ago. 6 months. A year or several years) they will not need them; you will approach a term deposit without the possibility of extension and early termination. It should be noted that even under these conditions, banks have provided the possibility of termination, and you may lose interest or even part of the body of the deposit.

If you have any spare capacity, but you can not be firmly confident that after a month they will not be necessary, should be chosen with the possibility of removing deposits of the deposit. In this case the ideal contribution to the possibility of making money on the card: any free resources – refers to the bank, and replenish the account if necessary – withdraw the money from an ATM.

In any bank managers will advise the appropriate deposit plan; your task is only a preliminary review of proposed bank interest.

What are the risks when investing money in the banks? Of all savings deposited money in a bank deposit account – one of the most secure. Agree, very rarely can hear news reports that the bank had collapsed – had gone bankrupt. Since independence, Ukraine whom there are only a few pieces.

Thus, if you have spare cash, you do not know where to invest money, but want to save them for later use, the most logical option – take them to the bank.

Personally, I prefer bank and keep their savings under 19% per annum (this is – not advertising), there are banks that offer higher interest rates or lower. I believe that we should not worry about the very possibility of bank. If he is in the market for over 5 years, has more or less recognizable brand and branch network, besides offer no sky-high interest rates (up to 20% annual) – its services can be safely used.

If after reading the material response to the question: “Where to invest?” Has become a subject for you (you know what your choice – the bank, but do not yet understand the details), the next time we talked about the currency in which to keep their savings. Torque – native, euro – reliable, the dollar – the most famous – so often find novice investors and are sharing, though not always necessary.

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Best Investment Rates in 2012
The first quarter of 2012 is nearing its end and most investors are looking for the best investment rates of the year. You may think that it is very early to determine which investment rates are the most ideal since it may depend on your current financial situation. Here are …

Lump Sum Investments
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What is better to invest in shares or CDT?
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