Capital guaranteed saving bonds

wayne42

I did ask the question elsewhere but it wasn`t answered..
I notice that Anglo irish (offshore) have a savings bond where 20% can be withdrawn without loss of interest (currently 6.25%).
They also say on their product page that the capital is 100% guaranted by its parent company..
Some on this forum say that such claims are not to be trusted..
Im just wondering if the FSA have rules which would enforce such guarantees should the worst come to the worst?
Must the parent company have insurance to back up such a product?

Jonbvn

The FSA do not guarantee any accounts offshore. Certain places (Jersey & IOM) do offer some protection of deposits, up to a certain limit (around 40k AFAIK).

BTW, if you are a UK tax resident, then you will be liable for tax on the interest on this account.

wayne42

I wont be a resident when/if I open the account so I should be able to enjoy the gross interest tax free..I phoned them up and they said all I need is a fixed address abroad(non EU).
I understand the offshore protection limits but not convinced how Anglo Irish can honour such a guarantee..Im sure they must be able to..
I just want to be VERY sure..lol

wayne42

The FSA do not guarantee any accounts offshore.

Oops.. I didn`t know that!!

Jonbvn

AIB are based in IOM. The IOM has depositer protection up to 75%/GBP15k max.

HTH.