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  • FIRST POST
    • Wesserz
    • By Wesserz 7th Jan 18, 9:19 AM
    • 1Posts
    • 0Thanks
    Wesserz
    Moving Abroad Saving Advice
    • #1
    • 7th Jan 18, 9:19 AM
    Moving Abroad Saving Advice 7th Jan 18 at 9:19 AM
    Hi Everyone,

    I'm moving to the UAE in April to work and my plan is to save money to put down on a deposit on a house for when I come back. My question is does anyone have any advice on the best way to do this?

    I was looking at a help to buy ISA but obviously need to be a UK resident to have one of those and I will not be a UK resident. I'll be looking to save between £1k and £2k a month, most likely £1500. Would it be better transferring money into a UK savings account every month or just opening a savings account in the UAE and then transferring it all back when I come home?

    Cheers
Page 1
    • ChasingSunshine
    • By ChasingSunshine 7th Jan 18, 2:44 PM
    • 112 Posts
    • 910 Thanks
    ChasingSunshine
    • #2
    • 7th Jan 18, 2:44 PM
    • #2
    • 7th Jan 18, 2:44 PM
    Most people I know who have lived in Middle East transfer money home pretty regularly (exchange houses literally on every street there so really easy to do though need to shop a little around for best rates). Financial regulation isn't anywhere near as robust as UK. There is no equivalent to the FSCS protection so if a bank goes bust you would lose whatever deposits you have with them. Also bank accounts are frozen when you leave a job / visa expires so might have difficulty accessing it for a month or so when you are due to come home.
    You will be taking on currency risk as UAE dirham is linked to dollar so fluctuates against sterling but regular transfers might lead to this being less of an issue. You don't want to save for a few years there and then suddenly sterling recovers just as you were about to transfer money home for deposit and so you get significantly less than expected.
    You aren't eligible to open an ISA as not UK tax resident and not all banks will let you open an account once you are no longer resident in the UK - might let you continue to save into them though so have a look at the terms and conditions and open them before you leave.
    If you decide to open account there please do not take out any investment products in the UAE. There are promoted to lots of expats as a great way to save but are really expensive, tie money up for decades and most people cash out at a loss of thousands of pounds rather than continue to pay in money after they leave the country
    Enjoy it though its a great place to live while having a chance to save (though also very easy to spends lots so some discipline is still needed).
    • atush
    • By atush 7th Jan 18, 4:22 PM
    • 16,456 Posts
    • 10,200 Thanks
    atush
    • #3
    • 7th Jan 18, 4:22 PM
    • #3
    • 7th Jan 18, 4:22 PM
    Open acounts before you leave, and have a UK postal address (use parents maybe) and make sure of online access.
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