What is the intelligent alternative to bank accounts?

In general we advise against investing via your local bank especially if your investment portfolio is large. The reason for this is twofold, first of all the local banks only protect a certain amount of your capital in case of trouble. Remember Cyprus? Anybody with more than 100.000 Euro lost all their money above that limit. The second reason is that the political sentiment is changing towards a more punitive taxation on wealth. During the Cyprus crisis the initial idea was that all depositors, no matter the size of their account, would be forced to ‘bail-in’ to save the bank. In the end that idea was met with huge resistance and it didn’t happen, but surely this idea will be floated again and again. 

You need banks for day-to-day payments, small saving accounts for household emergencies and mortgages, but not for investing. To mitigate the risks we recommend to use dedicated life insurance companies based on the Isle of Man and Guernsey who’s only business is to store and invest their client’s capital. They do not lend out any money and have a unique system that protects 90% of investor capital without any upper limits. 

Via these insurance plans the investor can access the entire investment market. Equities, Bonds, Mutual Funds, Exchange Traded Funds and Structured Notes from across the word can be held within one account thus facilitating management. The tax-efficient location of the Isle of Man and Guernsey can provide further benefit for the investor compared to investing locally. 

A lifetime benefit is that the insurance wrappers are internationally portable. Should you decide to move country, emigrate or live an international lifestyle you know that your capital is in a secure location, under English Law and that only you decide what will happen to it, not a local government or a country you may not even live in anymore. 

If you would like to read up on some of our ideas or learn more about investing in general why not check out the relevant articles in the knowledge center? Or, save yourself some time and contact our founders directly. It’s easy to discuss your options with them at a convenient time for you. We would like to hear from you so that we can understand your situation and offer you some personal recommendations.