Going abroad - where to put savings?

nm123_2

Hi there,

In February 2010, I'm moving to Australia for 1-2 years. I've got about £17k in savings, and would like to know what I should do with it whilst I'm away?

It's likely that I'll be outside of the UK for the entire 2010/11 tax year if that makes a difference?

Thanks!

G_M

Moneyfacts.

And complete an R85 for tax-free interest.

Jonbvn

G_M wrote: »

Moneyfacts.

And complete an R85 for tax-free interest.

R85 form is not applicable to people living abroad. There is another form, which is applicable (can't find it ATM). Not all banks will accept this other form.

gazzaaaa_2

Being an expat myself I suggest you set up a high interest account in the UK before you leave, as you'll not be able to do this in the majority of banks when you're a non resident. Also the UK interest rates are better in the UK than the offshore accounts at the moment (it's not always been that way). http://moneyfacts.co.uk/ is a good comparison site. As there's no sign of interest rate increases in the near future a 3 year fixed rate bond might be a good idea if you don't need easy access for the next 3 years especially and you don't return to live in the UK until 6th April 2013. You could always try and look at the saving rates in Oz http://www.banksavingsaccounts.com.au they're looking pretty good at the moment (you just have to be careful with the exchange rates and tax).

Note that not all banks will accept the R85 form but it's not a big deal to claim it back each year as you have to file a UK tax return anyway (you can do this online and they usually pay within a couple of weeks as long as your tax position isn't too complex).

I'm not absolutely certain but being away the whole tax year isn't that important for Australia as you have to pay tax there, whereas it is extremely important in the Middle East where there is no tax. Also if I remember correctly I believe they have a different tax period to the UK so I think there are ways you can exploit that a little to your advantage. I think it's best to do some investigation yourself into the tax side of things rather than rely purely on forums.

All the best in Oz.

Gazzaaaa.

nm123_2

Hi guys,

Now that our move to Oz is getting closer I'm starting to look into this a bit more seriously...

I've seen that Halifax International do an instant access savings account (which is what we need) for 3% with monthly interest. Looks ok to me - what do you reck?

I don't really get what difference tacking "international" on the end makes??

Thanks in advance! - again!

barak

nm123 wrote: »

.....I don't really get what difference tacking "international" on the end makes??

Among other things it usually indicates that the funds are offshore - Isle of Man or Channel Islands for example - and so are not covered by the same deposit protection scheme as onshore accounts.

http://www.halifax-international.com/home/depositors-compensation-scheme.asp

nm123_2

Thanks....But what is the benefit/difference of an offshore account? I know they are tax havens, but where is the differentiation to me?? Also, that link seems to suggest that funds are protected, or am I reading it wrong?!

Or would I be just as well to find a UK based bank with 3% interest paid monthly?

zzzLazyDaisy

have a look at lloyds tsb vantage account - for balances between £5k and £7k it pays 4%. It is a current account so you can have a debit card and on-line banking.

You can have up to 3 accounts. You do need to pass £1000 through the account each month, but that can be done by setting up a standing order between the accounts to circulate the money (it doesn't have to be new money)

nm123_2

zzzLazyDaisy wrote: »

have a look at lloyds tsb vantage account - for balances between £5k and £7k it pays 4%. It is a current account so you can have a debit card and on-line banking.

You can have up to 3 accounts. You do need to pass £1000 through the account each month, but that can be done by setting up a standing order between the accounts to circulate the money (it doesn't have to be new money)

So I could open 2 vantage accounts and swap the £1000 pm between them?? This could work I guess... I will be earning in Aussie dollars but will keep that in Aus most likely so can't guarantee £1000pm going back to the UK...

zzzLazyDaisy

nm123 wrote: »

So I could open 2 vantage accounts and swap the £1000 pm between them?? This could work I guess... I will be earning in Aussie dollars but will keep that in Aus most likely so can't guarantee £1000pm going back to the UK...

Yes, that is exactly what I do.

Note though that interest is paid monthly and anything over £7k gets a pittance, so you may be better off spreading the money over three accounts to allow room for the interest to go on. As long as you keep the balance above £5k you'll get the full 4%.

MoneySavingNovice

R85 form is not applicable to people living abroad. You need to complete the R105 form