what is the best international bank account for interest on fixed accounts

june55

Barclays gave me a figure of 2.9% for a fixed 12 month account in sterling, which sounds pretty alright. You can open one from abroad if you live there and it is held in Jersey I think.

innovate

Looks you can easily get better

http://moneyfacts.co.uk/compare/offshore/fixed-rate/

rockitup

Looking at the best buy tables for 1 year fixed rate bonds, beware of the Alliance & Leicester International one offering 3.5%.

I had trouble withdrawing my money from them in October 2008 just after the Icelandic banks collapsed. Was requesting a CHAPS transfer (same day), and it took over a week to get my money. A & L said we will release the funds when we are ready...

But they had just been taken over by Santandire

perth_worker

is a good idea to put money in a offshore account? - what is the point, or is it just the high interest you earn on it. do you avoid paying taxes? it says the money is not back up my the FSA government guarantee - does that mean it is pretty risky?

rockitup

perth_worker wrote: »

is a good idea to put money in a offshore account? - what is the point, or is it just the high interest you earn on it. do you avoid paying taxes? it says the money is not back up my the FSA government guarantee - does that mean it is pretty risky?

Yes having money offshore does carry more risk as Icelandic Bank depositors in IOM & C.I. could tell you. Some got most or all their money back, some still waiting as it is being paid out in instalments. Some who held deposits through offshore bonds issued through insurance companies are badly affected.

You either get taxed at source or agree to have your details passed to HMRC so if you live in UK or Euroland there is not much point in having an offshore account. If you live in a country which has a Double Tax Treaty with UK there are sometimes benefits if the country you reside in either taxes you at a lower rate than UK, or even better does not tax you at all.

Even if that does benefit an Expat who is a UK Citizen, then the Expat still has a personal allowance which they can reclaim tax deducted from UK bank interest. So unless you are an Expat living in the right countries and you are getting far more than £8k interest annually there is not much point in having an offshore account.

IMO it is better to stick with UK banks and have the safety of the FSCS guarantee, unless you are already abroad and have no way of opening a UK Bank account