No such thing as a free guarantee

Article Abstract:

Investors may be attracted by guaranteed investment products such as guaranteed equity bonds. These may have a number of drawbacks such as limited returns, income loss since dividends are not paid to investors, returns calculated gross of tax, which could be a problem for higher-rate tax payers, and the impact of inflation on capital. There is also the problem of inflexibility since penalties tend to be imposed for cashing in the investment before five years.

Evaluation, Bonds, Bonds (Securities)

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Not the best of offers

Article Abstract:

UK investors in business expansion schemes (BES) lose tax benefits if they sell their investments before five years have elapsed. Best Loans is a company offering loans to investors in such schemes, allowing access to funds without selling their BES investment. The offer may be useful for investors needing immediate access to funds, but for investors able to wait until the five year date has been reached, returns may be better from staying in the scheme.

United Kingdom, Venture capital companies

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The pain-free way to avoid traps

Article Abstract:

UK savers should ensure that they avoid traps such as having funds in an account that pays low rates of interest. They should beware of offers that seem to provide very high incomes, since capital growth could be affected. Guarantees may mean a low income. Advertising methods may be geared to distracting investors from small print. Investors should always ask difficult questions and review the position of investments once they have been purchased.

Savings accounts

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