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  • FIRST POST
    • Taan
    • By Taan 12th Oct 16, 8:58 PM
    • 1Posts
    • 0Thanks
    Taan
    Moving money from South Africa to the UK
    • #1
    • 12th Oct 16, 8:58 PM
    Moving money from South Africa to the UK 12th Oct 16 at 8:58 PM
    I would like to get some advice on what to do with savings I have in South Africa. At the moment I get about 6.6% interest on the money in an account in South Africa. I need to give 3 months notice if I want to move the money. With the pound that has fallen slightly I am wondering if it would be a good time to move the money to the UK? I probably won't get a v good interest rate in the UK though. I see there are some fixed rates of about 4% for 2 year savings. I want to use the money in about 2.5 years so can have it on a fixed rate till then.

    Advice would be welcomed. Thanks
Page 1
    • ColdIron
    • By ColdIron 12th Oct 16, 9:37 PM
    • 2,550 Posts
    • 2,805 Thanks
    ColdIron
    • #2
    • 12th Oct 16, 9:37 PM
    • #2
    • 12th Oct 16, 9:37 PM
    I see there are some fixed rates of about 4% for 2 year savings
    Originally posted by Taan
    Those aren't simple savings accounts, you'll do well to get 1.5%
    http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html
    • Voyager2002
    • By Voyager2002 12th Oct 16, 9:48 PM
    • 11,015 Posts
    • 7,367 Thanks
    Voyager2002
    • #3
    • 12th Oct 16, 9:48 PM
    • #3
    • 12th Oct 16, 9:48 PM
    What currency is it in, and do you expect that currency to perform better or worse than the pound?

    Have you checked what documents you need in order to take the money out of the country? South African may have rules that restrict this kind of activity...

    You could also consider a dollar or sterling account with a South African bank.
    • soulsaver
    • By soulsaver 12th Oct 16, 11:50 PM
    • 1,053 Posts
    • 309 Thanks
    soulsaver
    • #4
    • 12th Oct 16, 11:50 PM
    • #4
    • 12th Oct 16, 11:50 PM
    If you haven't, check first that a UK bank will exchange SA Rand for £UK other than in small amounts... it's not a given.
    There are 24 bottles of beer in a crate. There are 24 hours in a day. Coincidence? I think not....
    • Sanctioned Parts List
    • By Sanctioned Parts List 13th Oct 16, 12:11 AM
    • 294 Posts
    • 764 Thanks
    Sanctioned Parts List
    • #5
    • 13th Oct 16, 12:11 AM
    • #5
    • 13th Oct 16, 12:11 AM
    While your at it, check the current exchange control limits. Last I looked, RSA had quite a low ceiling on what can be transferred each year.

    • Voyager2002
    • By Voyager2002 13th Oct 16, 9:24 AM
    • 11,015 Posts
    • 7,367 Thanks
    Voyager2002
    • #6
    • 13th Oct 16, 9:24 AM
    • #6
    • 13th Oct 16, 9:24 AM
    While your at it, check the current exchange control limits. Last I looked, RSA had quite a low ceiling on what can be transferred each year.
    Originally posted by Sanctioned Parts List
    Another reason for looking at dollar accounts within South Africa... or buying gold nuggets to carry in hand-luggage!
    • eskbanker
    • By eskbanker 13th Oct 16, 1:03 PM
    • 3,610 Posts
    • 3,229 Thanks
    eskbanker
    • #7
    • 13th Oct 16, 1:03 PM
    • #7
    • 13th Oct 16, 1:03 PM
    With the pound that has fallen slightly
    Originally posted by Taan
    Without wishing to succumb to tabloid hysteria, what would you consider to be a significant fall?! Almost 25% in a few months seems quite notable to me....
    • steampowered
    • By steampowered 13th Oct 16, 2:42 PM
    • 522 Posts
    • 456 Thanks
    steampowered
    • #8
    • 13th Oct 16, 2:42 PM
    • #8
    • 13th Oct 16, 2:42 PM
    Yes, now is probably a good time to do it while the value of the pound is at a 31-year low.

    Use a currency exchange service (I used clearfx and thought it was great). They will get you much lower fees and a much better exchange rate than your bank.

    You will get a better interest rate in South Africa but that is because inflation is higher over there. You would expect inflation to erode the value of your savings over time, which will depress the exchange rate.

    As you can see from a graph like http://www.xe.com/currencycharts/?from=ZAR&to=GBP&view=2Y the ZAR has been steadily devaluaing against the pound for some time now, and despite the spike following Brexit, you would expect that to trend to continue while they have higher inflation than us.

    So although you are getting 6% interest in South Africa, in reality you might not be any better off than having a lower rate in the UK.
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