Non-sterling savings (how to avoid hyperinflation)

purch

You will be left with opening an account, either with an offshore providor such as Nationwide International, or Bank of Scotland International or similar, or opening an account with a Bank in the domicile of the country whose currency you are trying to seek safe haven.

Note that you won't find many "High-Interest" accounts available....you'll be lucky to get 3.5% for EUR or 2.5% for USD (Gold pays 0% in case you were wondering)

needlessly rude people on internet forums are

I know. :cool:

It also amazes me how often people with set agendas come on, ask for advice, ignore all the advice and then pick arguments with some of the people who take the time to try and help.

Check out this thread:
http://forums.moneysavingexpert.com/showthread.html?t=1323733

The bloke who started it was picking arguments and complaining that no one had given him the answer he wanted, by post #9

Anyone would think you had to pay for the advice on this forum, rather than it being freely given !!!!

Charles1968

purch wrote: »

You will be left with opening an account, either with an offshore providor such as Nationwide International, or Bank of Scotland International or similar, or opening an account with a Bank in the domicile of the country whose currency you are trying to seek safe haven.

Note that you won't find many "High-Interest" accounts available....you'll be lucky to get 3.5% for EUR or 2.5% for USD (Gold pays 0% in case you were wondering)



I know. :cool:

It also amazes me how often people with set agendas come on, ask for advice, ignore all the advice and then pick arguments with some of the people who take the time to try and help.

Check out this thread:
http://forums.moneysavingexpert.com/showthread.html?t=1323733

The bloke who started it was picking arguments and complaining that no one had given him the answer he wanted, by post #9

Anyone would think you had to pay for the advice on this forum, rather than it being freely given !!!!

Using forums to seek specific advice is perfectly reasonable.

I don't see any need - ever - to be rude or to insult other posters. I'm perfectly happy to engage in debate or to pose questions that might be uncomfortable for people with too much exposure to risky investments, but I don't think there's ever any justification for making snide remarks or for engaging in personal attacks.

purch

So I guess nothing posted has been any use whatsover ?.

Sorry I am sure we will all try harder next time.

Charles1968

purch wrote: »

So I guess nothing posted has been any use whatsover ?.

Sorry I am sure we will all try harder next time.

on the contrary it was all useful. I found out that foreign-currency savings accounts do exist, but interest rates aren't much higher than around 3%. Haven't yet had time to work out a best-buy list though, but it might be a useful thing to add to this website somewhere. I do think savers should be aware of the risk of staying in sterling given the state of the UK economy.

Still falling against the euro and dollar:
http://uk.reuters.com/article/ukPoundRpt/idUKL363103020081203

RayWolfe

purch wrote: »

So I guess nothing posted has been any use whatsover ?.

Sorry I am sure we will all try harder next time.

You may just find that some people ask questions not to elicit an answer, but to make some sort of point.

trenchwars

Is there an easy way to transfer a small amount of savings into euros or dollars, short of getting currency from the post office and sticking it under the bed? Not too worried about interest rates.

Most accounts I have seen either require a large minimum balance or a monthly fee.

Also, I don't have to fill in a tax return and I'd like to keep it that way, so preferably something that deducts tax at source or pays no interest.

harry_w

Charles1968 wrote: »

on the contrary it was all useful. I found out that foreign-currency savings accounts do exist, but interest rates aren't much higher than around 3%. Haven't yet had time to work out a best-buy list though, but it might be a useful thing to add to this website somewhere. I do think savers should be aware of the risk of staying in sterling given the state of the UK economy.

Still falling against the euro and dollar:
http://uk.reuters.com/article/ukPoundRpt/idUKL363103020081203

I wish I'd transferred my savings to the euro (or even better dollar or yen) last year when it became apparent that UK financial and personal debt was unsustainable in a credit crunch (see:[Greed & Fear] - “Britain is only about housing, financial services and subprime lending”).

I'm a fairly lazy and ignorant consumer though, e.g. I don't know quite how or when domicile matters.

I suggested moving out of sterling back then to a family member who'd worked in financial services, including a stint as an advisor. They dismissed it, questioned the legal and tax conditions and they pointed towards table leaders from comparison sites.

In light of the devaluation since, not pursuing my gut feeling then may have be one of worst financial decisions I've ever made.

There's an option for a comparison of Foreign Currency Accounts here:
www.moneysupermarket.com/currentaccounts

Nationwide International, for some reason aren't listed by the comparison site, but they offer a few accounts that look to me like the best of the big UK institutions: Sterling accounts | US dollar accounts | Euro accounts

This old Telegraph article points out one Channel Isles bank offering an interesting range of products, Investec.

Check that your currency accounts keep on tracking
By Melanie Wright
Last Updated: 12:01am BST 09/05/2006

There are significant conditions attached:

Investec Horizon Account
In recognising the increasingly international outlook of the investors of today, we have created a savings account to meet our clients’ requirements. Available in Sterling, US dollar and Euro, the Investec Horizon Account offers highly competitive interest rates that will never fall below the Sterling Bank of England Base rate, US Federal Reserve Bank (Fed) or the European Central Bank (ECB) rates.

Key features

Interest rates are variable but will never fall below the GBP Base rate, US Fed rate or ECB rate
Interest paid quarterly
Interest paid away free of charge to a nominated account

How it works

The account operates on a 90-day notice basis. There is no fixed term for the investment; the funds remain invested in the account at the applicable rate and, when making a withdrawal, notice is given and 90 days later the funds are paid out.

Withdrawals

The 90-day notice is effective from the date of receipt of the written instruction. If an early withdrawal is required, a minimum withdrawal fee of £25, $50 or €50 will apply. Interest can be paid away free of charge to a nominated account each quarter. Cheques may be issued in Sterling, US dollar or Euro. Withdrawals can also be made in a minimum of eight currencies by electronic funds transfer.

Interest rate

Click here to view the current rates.

Minimum balance

$50,000
€50,000
£25,000

I'm interested in any views on the institution, or the product.

They also offer this interesting sterling savings account through what I suppose is their UK arm (amongst an interesting range of savings Deposit accounts):

High 5 Account
The rate paid is always the average of the five highest savings rates as published by Money£acts². Minimum deposit of £25,000

Anyone know what the CDS on Investec is?

Charles1968

harry_w wrote: »

I wish I'd transferred my savings to the euro (or even better dollar or yen) last year when it became apparent that UK financial and personal debt was unsustainable in a credit crunch (see:[Greed & Fear] - “Britain is only about housing, financial services and subprime lending”).

I'm a fairly lazy and ignorant consumer though, e.g. I don't know quite how or when domicile matters.

I suggested moving out of sterling back then to a family member who'd worked in financial services, including a stint as an advisor. They dismissed it, questioned the legal and tax conditions and they pointed towards table leaders from comparison sites.

In light of the devaluation since, not pursuing my gut feeling then may have be one of worst financial decisions I've ever made.

thanks. I will look into these accounts...

Even though sterling has already fallen substantially, I think it's still worth moving a significant proportion of savings out of it because there's further short-term downward pressure on sterling (from interest rate cuts as the BoE tries to head off deflation - could cut all the way to zero) and long-term downward pressure from spiralling inflation in 2010 onwards if the interest rate cuts and government borrowing/spending spree cause the economy to overcorrect. There is also a serious danger of a "run on sterling" happening with little warning, so it makes sense to take defensive action well in advance.

Keeping all of one's savings in a single currency is risky - all eggs in one basket etc. It's akin to keeping all of one's savings in one bank, or all of one's equity investments in a single company.

So I think it's still sensible to move out of sterling, but I think the best approach is to do it in instalments to iron out short-term currency fluctuations and do hold a range of different currencies to spread risk, given that the economy of many countries is on the rocks.

gozomark

Charles1968 wrote: »

long-term downward pressure from spiralling inflation in 2010 onwards if the interest rate cuts and government borrowing/spending spree cause the economy to overcorrect.

if, and when that happens, expect interest rates and taxes to be hiked very quickly - if the rescue plan works, could easily see interest rates back at 5% plus and VAT at 20% in 3 years time

gunnaknow

These are the best rates for euro savings accounts that I have been able to find. I think that only the first 20,000 euros is covered with Advanzia, so bear that in mind.

http://www.angloirishbank.co.im/Personal_Savings/index.htm
http://www.advanziakonto.com/en/index.php