Derbyshire Offshore Balanced Bond 7.5%

arman68

http://www.derbyshire.co.im/offshore_balanced_bond.aspx


Your initial deposit is split equally between two types of offshore deposit accounts (which we’ll call elements);
Fixed Rate element

• 50% of your initial deposit goes into a 1 year account paying a market-beating fixed rate of 7.5% Gross/AER+.

House market-linked element

• The other 50% of your deposit is invested in a deposit account paying a return equivalent to 100% of the rise, if any, in the Halifax House Price Index (subject to averaging) after 5 years. The return you could receive is uncapped.
• No matter what happens to the Halifax House Price Index, you will receive all of your initial deposit back.
• Returns on the House market-linked element are currently exempt from EU Savings Tax Directive.

arman68

What do you think? Looks pretty good to me. The half linked to the halifax house market index is locked for 5 years, so you need to make sure you can afford it.

I am concerned about the housing market though. There is a guarantee to get back no less than the original investement, but we all know that would be a loss

baby_boomer

The good bit lasts for 1 year. The not so good bit lasts for 5.

Would you have considered investing in a housing bond without the 7.5% teaser offering? If not, don't touch it.

Jonbvn

Another variation on your typical poor GEB, but this time with property.

The only people making money off this will be the Derbyshire BS.

obsessed_saver

where the heck is this bank based in? where is ".co.im"?

Speculator

isle of man

JTC_2

Does anyone knows how to proof "I am a uk resident, but non-domicile" to the bank?

Jonbvn

To be a "non-dom" you would most likely not be a UK passport holder, and/or you pay tax elsewhere in the world. Therefore, a copy of your passport together with suitable proof of your tax payments in another country should be adequate.

dunstonh

Pretty poor investment. As per usual with these types. They are using the commission on one product to part offset a higher rate on another. You get a good rate for one year but for 5 years, your money is in a pretty naff investment with no yield and linked purely to an index which also doesnt take into account any yield.

Using offshore for a product like this means you are not benefiting from gross roll up and the only ones likely to be better off are higher rate taxpayers who will be basic rate in 5 years time. That said, conventional offshore bonds would be a better option for someone in that situation.