• What are bonds?
Investment bonds are available from a variety of sources and in a variety of different formats. Banks will generally offer an investment bond which simplifies the process of investment and may be linked to the stock market.
Meanwhile, the government provides national savings and investments, including premium bonds, which do not pay interest but instead award monthly tax-free prizes of up to £1 million.
• Pros/cons
Any investment which is linked to the stock market has the potential to decrease in value. This is obviously risky, so it may be worth thinking carefully before committing to such a scheme.
While premium bonds are tax-free and risk-free, guaranteeing you can recoup your initial investment at any time, they do not pay interest and there is no guarantee of winning.
Independent offshore savings, investment, pension and taxation advice.
Independent offshore savings, investment, pension and taxation advice.
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