Skipton International has launched a fixed-interest bond for investors looking for an above-cash return over 18 months in an offshore account.
Jim Coupe, managing director of the Guernsey-based offshore bank, said: “Interest rates are still at record lows, and there was even talk in March of a further reduction.
“It means our 18 month bond is a very competitive and attractive product for people looking to get a return on their hard-earned savings over the next year and a half, while we wait and see what the Bank of England do next.’
The bond will pay an annual gross interest rate of 1.76% / 1.75% AER
The bond is fixed until 15 October 2016.
Interest will be paid monthly or upon maturity on a minimum investment of £10,000 and a maximum of £5m.
Customers should be advised there is no early access available with this account, and it must be held until maturity.
Kevin White, head of financial planning for national wealth advisory firm deVere United Kingdom, said: “Offshore bonds might be advantageous for some expat clients for many reasons.
“These include: because they can invest in a variety of currencies; many bonds, such as Isle of Man and Guernsey bonds, have potentially better protection levels than that offered by the UK FSCS; investments can be made in an array of assets free from UK tax, such as shares and structured products; and crucially they can still be used if clients become UK residents again.”