I am told it would be good to invest in a Capital Investment Bond but I may need the cash in a little over a?

year. Would I be taxed on cashing in the value?

You are allowed to make tax deffred withdrawals of up to 5% p.a. Some bonds allow you to take out around 10% p.a. but there may be a tax charge if you are a higher rate tax payer.

It depends how much you may neeed, but do not forget, you should view a bond as a medium term investment at least. Why not put some in a bond, and some in an easily accessible account?

You can also get a no exit penalty bond too. You normally take a 'hit' then on an initial charge, but this may be better. Some financial advisers will rebate commission to lessen the initial charge for you.

You should speak to a financial advisor...

...anyway! If you need the cash then your best bet is to put it in a high interest saving account. Putting money in bonds and trust funds are not without its risk for starter. You nearly always get penalised for cashing in early. They usually have a minimum investment period of 5 years or so, and you may not get back the same amount as you put in (ie you can lose money). They usually have a service charge for your investment too. If you just want to put the money away for a year then the safest option is to put it in a high interest account. Next best option is putting it in an index-linked tracker (where the gain relates directly to the FTSE 100 index if you are in UK), which isn't guarantee to make money but are cheaper then managed funds and bonds and a lower risk. They also have a lower fee and can usually be cashed out easily. Third option is to buy a blue-chip share but the stakes are higher.

Since you are asking this question I assume that you have limited financial knowledge so you should just put it in a high-interest account.

Adrian