Savings when living abroad

Mel2

My family and I will be going to Canada in a couple of months, initially for 2 years, but hopefully we will settle there permanently. We will be selling our house in the uk before we go so will have a considerable sum of money once this happens. We want to save this for when we eventually buy our own house again (we will be provided free accomodation for the 1st 2 years in Canada) whether it be in Canada or the UK. I've not much knowledge of savings and investments so am unsure as to what to do with this money when we get it. Is it best to put it in a UK savings account, or open a Canadian one and what kind of account would be best?

My son also has an ISA here. Is it best to leave it here or open something similar in Canada?

Thank you in advance for any advice you can give us.

Mel.

atush

Open any ISAs and savings accounts you have now. Isas can be left after you leave, but not added to or opened.

you will also be restricted from the best savings accounts available once you are non resident. So open a few of the best non bonus accts now (in joint names if poss) so as to deposit funds from sale of house once that happens, and for other cash savings in GBP later.

[Deleted User]

I thought that you couldn't gain interest on ISA's if you are not resident in the country?

atush

If opened while resident, they are fine left as is. you can't add to them. Not sure about transferring, but assume this is possible too if you were resident when they were opened.

Most important in this case, is to get some non bonus savings accts open at different banks to take in the money from sale of property.

innovate

Don't put more than £85K (£170K if joint account) into any single UK financial institution. http://www.moneysavingexpert.com/savings/safe-savings

Whether to leave the money in the UK or take it to Canada - - only you can know what the more likely destination will be. Any currency exchange is subject to exchange rate risk - you may be lucky and gain, but you may also be unlucky.

atush

Well pointed out Innovate.

That is why I said to open more than one savings acct, and to make them joint if poss. For just that reason

xylophone

And when you get to Canada, you might need to check your position with regard to income from your UK accounts?
Is this of interest? ( A Chinese immigrant in Canada querying tax on worldwide assets).http://canadianimmigrant.ca/immigrate/do-i-have-to-declare-foreign-income

zerog

Domino9 wrote: »

I thought that you couldn't gain interest on ISA's if you are not resident in the country?

No, you just can't put new money in, and you'll have to pay Canadian income tax on any interest (and Canada does check this stuff eventually, so don't "forget" to declare them)

nitsuj80

Also moved abroad a while ago.
Definitely open all accounts you need before you go.

Keep a close eye on the exchange rates, and only transfer money when they are favourable.

And regardless of when you transfer money, make sure you compare at least 3 transfer sites. I have never found a back to offer similar rates to the online sites and before I make larger transfers I always check which is cheaper.