Few alternative saving method which will work for you!

Increasing tax burden for high earners is expected to prompt wealthy individuals to seek alternative ways to save money without getting taxed. For all those who want to put, more aside for retirement, here are few alternative

• The most popular way to save money is by individual saving account, where in one can keep on parking his extra earning in your saving account which can earn a little interest prior not withdrawing unless faced any crisis.

• Maximum Investment plan are the another alternative investment plan which will help in saving simultaneously investing in different equity linked products.

• Venture capital Trusts also offers worthwhile tax breaks. Investors receive heavy Income Tax relief on contribution with venture capital trust.

• Enterprise Investment Schemes are similar to VCTs in that they typically invest in early stage companies. The main benefit is that there is no capital gains tax to pay, capital losses may be offset against other gains.

• Offshore bonds also offer a potential tax saving for higher and top rate tax payer. The investment bond can grow offshore without tax being deducted. They can also draw up to 5 per cent of the original investment each year and defer any tax owed on the income until encashment. Advisors say the bonds make sense for people who will be in a lower income tax band at retirement.

Source : Financial times