Advice needed on house sale proceeds

Jandi_2

Hi, I badly need some advice on what to do with the proceeds from the recent sale of my house in the UK.
I moved to New Zealand in April so am no longer a UK resident for tax purposes. I have retained a current account with Santander as well as a linked savings account which pays 1% interest for amounts over £50,000. I have put the money into the savings account for the time being as the exchange rate from sterling to NZ Dollars is at an all-time low and I thought I would wait and see if it improves in the next year or so as I don't need the money right away.
I need to find a way of getting more interest on my money in the meantime so would offshore banking be the best option do you think?
Many thanks for any advice you can give me.

atush

I owuld contact Santander first. AS you are already a customer, it will be far easier to open a better paying acct with them than elsewhere incl offshore (which usually has lower rates of interest).

Second, will you ever move back to the uK?

third, currency risk. By not moving the money to NZ now, and waiting for a 'better' rate, you are exposing your self to losses if the rate worsens. If you know for sure you will need the money soonish, I would transfer half now so as to hedge your bets. What rates do NZ banks give on savings?

missile

It may be at an all time low v NZ but what makes you think it will improve? Have you looked back over prevoius years?

As an ex pat, I have watched sterling fall, strengthen a little then continue to fall further v euro over many years.

If you intend living permanently in NZ(?) then you might be wise to move most of your money there.

calypso_rhapsody

If you do decide to leave the funds in a UK savings account don't forget the £85k FSCS limit (or £170k joint). Don't know how much is involved but you mention over £50k ... You may want to spread your savings around if it's over the limits (i would!)