Yorkshire Guernsey Rollover Bond is a fixed rate one-year bond that gives investors the option to re...
Yorkshire Guernsey Rollover Bond is a fixed rate one-year bond that gives investors the option to reinvest back into the product at a new rate at the end of each term.
The initial term runs from the date the bond is opened until the end of the corresponding month one year later. At the end of the term the investor can rollover for a further term at the fixed interest rate applying at that time. Interest is calculated on a daily basis and added to the investors account on maturity each year or paid to another account.
Peter Symes, managing director at Yorkshire Guernsey, said: "The interest rates obtained offshore over the years have mostly been well in excess of those available in the UK, so depositors have gained in the long run."
At the beginning of each month, Yorkshire Guernsey sets the interest rate that will apply throughout the term to all bonds opened during that month. A new rate is set each month. This could be higher or lower than the previous month.
The minimum investment is £5,000 up to £500,000. Investors can make additional deposits during the month the bond is opened. For example, if a bond is opened on 18 November more money can be added until 30 November, but if the bond is opened on 30 November then the investor will not be able to do so. A new issue of the Rollover Bond is introduced each month, so investors can start a new bond instead.
At the end of the term, the investor's balance is transferred to a new issue of the bond and the investors rollover month will begin. During the rollover month, investors will have penalty-free access to their money and investors will be able to add to the balance. Investors can continue rolling over into further years.
However, investors do have the option to take money out of the bond three months after it is first opened, although there is a penalty. The investor will have 90 days interest deducted if they decide to take this option. This deduction of interest reflects the cost Yorkshire Guernsey incur by allowing early closure of a fixed rate account.
The account is open to expatriate investors, trustees as well as UK investors. The advantage of the account is you can receive extremely competitive rates of interest without the deduction of income tax. While the investor is still responsible for declaring interest to their tax authority, a Yorkshire Guernsey offshore account investors have a choice of dates for payments of interest, giving the investors greater freedom to plan their finances. The fund is only denominated in sterling. Statements are issued to investors following each transaction made in the account.
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