Off shore savings

purplevicki5

Hi,
I currently live in Bermuda although I am British. I have been here for 1 1/2 years now. I earn my salary in $ but the exchange rate is so good I would like to start sending more of it home.

I currently have a savings account with RBS which is my UK bank account but it is the direct saver at 2.5%.

As I am not resident in the UK, there are a lot of accounts I cannot set up. Would I be best creating an off shore UK sterling savings account instead?
I can save about 600 GB pounds a month.

Thanks in advance for any help.

gozomark

do you intend returning to the UK ?

purplevicki5

Thanks for the replies. I am planning on returning to the UK in another 1 and half years although if my plans change I might not return for another 4 years.

Who do the best off shore savings accounts?

barak

Have a look at this and any other 'best buy' savings sites you can find -

http://www.moneyfacts.co.uk/money/offshore/0/offshore-search.aspx

shaun_from_Africa

One thing that you should bear in mind when investing offshore is that the banks and building societies in the Channel Islands don't offer any financial protection for non CI residents if they go under.

This isn't the case for the Isle of man. They cover expats for £50,000 (but as with any protection, it relies on the fund having enough money to cover any shortfall in the banks finances)

I have an e-savings account with Bradford and Bingley International (IOM), and their current rate is 3.5%. This is after the most recent interest rate drop, and is about the best you will get at the moment.

You can do most of the applying online, but you still have to send hard copies of proof of id and residence.

gozomark

shaun_from_Africa wrote: »

One thing that you should bear in mind when investing offshore is that the banks and building societies in the Channel Islands don't offer any financial protection for non CI residents if they go under..

not true any more -
http://www.gov.gg/ccm/treasury-and-resources/press-releases/2008/depositor-compensation-scheme-update.en

From 26 November 2008 all retail deposits are protected by the introduction of the Guernsey Banking Deposit Compensation Scheme.

puts Guernsey about on par with IOM - not as good as UK or Ireland, but better than nothing

shaun_from_Africa

Thanks for the update. I had heard rumours that it was coming in, but I didn't realise it had already started.

Now all I need is for Jersey to follow. (that's where I get my salary paid, and I have a savings account there as well)

purplevicki5

Thank you all for your replies. I am going to open one with Bradford and Bingley based in Isle of Man. I applied on line today and will send off documentation this weekend.
Thanks again!

shaun_from_Africa

Jersey still has no protection for savings held by non residents. There is a scheme being looked at now, but this will only be for Jersey residents.

withnell

gozomark wrote: »

From 26 November 2008 all retail deposits are protected by the introduction of the Guernsey Banking Deposit Compensation Scheme.

puts Guernsey about on par with IOM - not as good as UK or Ireland, but better than nothing

"The maximum amount of compensation is capped at £100 million in any 5 year period." - might take a very long time to get your money back.