Expat Savings Accounts

MoneySavingNovice

Hello,

The short question is does any-one know of a Savings Account - with a cash card, which can be opened by an expat?


The Long Explanation

My Uncle in Law who has for many years lived in Canada, receives a very small pension from the UK.

He wants a UK savings account which he can arrange to pay this amount into. As the pension is less than £100 per month an off shore account is not worth while (due to the bank charges) nor is it worthwhile transferring this amount via international transfer to his hank in Canada – also due to the bank charges.

The problem that we have got is that most account require the holder to be ordinarily resident – which he is obviously not!

Hence does any-one know of a Savings Account - with a cash card, which can be opened by an expat?

Many Thanks

Loughton_Monkey

I have to ask: What is he doing now?

I can't fully grasp what he is trying to achieve? The need for a cashcard implies he wishes to spend it rather than save it. If he spends it, the average value in the account is very small, hardly worth the cost of a phone call given the miserable interest he would earn in UK£.

If he has other resources for $CND expenditure, and just wishes to accumulate his £100, then I can't see the need for a cashcard.

MoneySavingNovice

Loughton_Monkey wrote: »

I have to ask: What is he doing now?

He is retired

I can't fully grasp what he is trying to achieve? .

To avoid large bank charges.

The need for a cashcard implies he wishes to spend it rather than save it.

Sort of true - but only when he is in the UK (once a year or so) As he does not have a UK bank account he concluded (and I agree) that this is the best way for him to withdraw the money when he is here.

If he spends it, the average value in the account is very small, hardly worth the cost of a phone call given the miserable interest he would earn in UK£.

But the alternative is worse - the cost of an expat bank account is c.£20 per month - or 20% of his income, or the transfer this to his Canadian Bank account is also costly - especially as he will then need to buy £ when he visits the UK!

If he has other resources for $CND expenditure, and just wishes to accumulate his £100, then I can't see the need for a cashcard.

Yes and see explination above.

Have you a suggestion?

MoneySavingNovice

Hi,

Thanks for the above. It no cigar though, as nether of these accounts have lower charges then he is already paying.

He does not have a UK account at all - hence the problem.

Thanks any-way

Jonbvn

OP,

Given the small amounts, what you require is simply not available. The only option would be an offshore account and they have high minimum balance requirements.

Reaper

How about asking the pension company if they will pay him annually instead? That would reduce the charges when transfering the money to Canada.

Alternatively does he have a trusted friend or relative in the UK he visits (e.g. son/daughter?). If so perhaps he could ask the pension company to pay it into their accounts instead and they can hand it back to him as cash to spend when he comes to visit.

Neither solution is ideal I admit.

Loughton_Monkey

Reaper wrote: »

How about asking the pension company if they will pay him annually instead? That would reduce the charges when transfering the money to Canada.

That's a good one I hadn't thought of.

Also, I note that Newcastle Building Society, and Leeds & Holbeck Building Society both have Gibralta offshoots. They may, for all I know, be able to deal with relatively small amounts and cashcard.