International savings account

hvatka

I have read some warning signs about the British pound being over valued against a number of ther currencies. I would like to prepare fo this drop by putting my savings into an international euro savings account. However, it seems to me that the fees for these accounts are expensive and the interest rates are low. Can anybody advice me on a reasonble euro account with a good savings interest rate?

caliston

Try this comparison site:
http://www.moneyfacts.co.uk/searches/offshore.aspx
(try all three options - there don't seem to be many 'expat accounts' whatever they are)

Rates depend on the actions of the European Central Bank not the Bank of England, so they're lower at the moment. But don't forget currency variation may take up this slack (or make it worse).

In view of the current fuss, it's worth noting that the Isle of Man provides a compensation scheme of 75% of the first £20,000 of your deposit (ie max payment £15,000), while Guernsey provides no protection. I couldn't find any such scheme for Jersey either.

Watch the tax position - you can either elect to have tax deducted at source (15% until 1 July 08, 20% until 1 July 11, 35% thereafter) or the details can be sent to the UK tax authorities for inclusion on your tax return (where you may have to pay UK tax depending on your situation). Google 'European Savings Tax Directive' for details.