Off-Shore Bonds - How safe ARE they??

linclass

Hi,
I've got 2 off-shore investments taken out in 2002 and invested for minimum of 5 years. Well, they've grown pretty well in that time, last year (the 5-year mark) they attracted £13k interest. They of course are NOT both in the same basket! I'm getting quite worried now as to whether I should withdraw the lot and either re-invest in a Building Society (Nationwide for example) or maybe NS&I.

If there's anyone been in the same boat, please can you advise what you've done? OR any experts reading this please? What would YOU suggest?

Thanks in advance,

L

dunstonh

Offshore bonds are just tax wrappers. They are containers for investments and carry no risk in themselves. The risk will be based on what investments you hold within the offshore bond. If you have a FTSE tracker for example then its medium/high risk. If you have a deposit account then its cash.

I'm getting quite worried now as to whether I should withdraw the lot

Offshore bond taxation works best over the long term. Early encashment can create a significant tax liability. Why not just alter the investments within the bond if you want to change the risk level?