IOM offshore, which bank is safest now/has best interest rate ?

miaviv

I currently have £200K all in one account with Bank of Scotland International in the IOM. I'm not rich but we sold our house and for work reasons have to temporarily rent hence the lump sum ticking over. When we originally invested a year ago nobody was talking of bank security but of course now, it is a major priority.

I'm thinking of spreading this around to be prudent and wish to put £50K (now guaranteed by IOM depositor protection) in 4 different accounts, but I am having trouble navigating my way through all the accounts on offer and also who is likely to be safe at the end of the day.

My shortlist includes Alliance and Leicester, leaving some in HBOS group and I can't make my mind up about a 3rd and 4th option. Also, the account is currently only in my name, could I therefore put £100K in HBOS in a joint account for my husband and myself and be protected for the whole amount in the event of bank collapse ?

I know that I can look up "best offshore accounts" on various websites but I'd really appreciate some opinion from those in similar situations to myself. Thanks

cheerfulcat

Why does it have to be offshore?

occamsrazor

I now have really serious doubts that the Isle of Man depositor's protection has any worth. I would really think about trying to get some of this money back onshore to the UK if you are able to.

If you really do want, or have to, to stick with IoM I would be putting it in the safest place I can - which would currently be Anglo-Irish Bank IoM ONLY IF it is decided that they fall under the Irish Govt guarantee, and you feel the Irish Govt would hold true to it.

Better still would be to put it with Northern Rock Guernsey, which is currently guaranteed by Northern Rock UK, which is itself under the semi-temporary public ownership of the UK Govt.

Saying that I think you should read this post by a desperate Kaupthing Isle of Man depositor before you decide anything in the IoM:

http://forums.moneysavingexpert.com/showpost.html?p=14850693&postcount=246

MIKELSOK

A lot depends on how quickly you might want the money

Option A: Ultra Cautious Approach
If I was in your position I would only put it in 100% guaranteed places and would not under the current climate be chasing high rates of interest. So that leaves about three places. Northen Rock (But they have stopped taking on new deposits I think), Bradford & Bingley, NS&I (Govt Backed) basically anything thats Govt backed. Yes I know the govt have said that they will back those institutions that are in the FSA scheme to £50K but for peace of mind only govt backed banks are 100% safe for now. If God forbid matters get much worse which I hope not the govt may be forced to re think their promises.

Option B: Assumes a change in Govt Strategy but generally safe

Break it up into £25K lots and spread amongst 10 institutions just in case the Govt decide to reduce the level of compensation. Do not use I of M, or Guernsey as I don't believe they have as good a compo scheme as ours but check it out. in general keep it the UK for now. Even Ireland, B of Ireland which runs the Post Office saver account and has been guaranteed by their govt is risky in my view simply because they are potentially another 'Iceland in waiting' The Irish economy is not doing well from what I have read. I can't see the Irish Govt bailing them out if it came to the crunch, it would have to be the EU and then that in itself has many political connotations.

Up to now we have seen a few players rescued but there will reach a point when that ends for sure.

Finally, don't spread it twice in the same Banking Group

http://timesbusiness.typepad.com/money_weblog/2008/10/who-owns-who.html