Can I open a savings account abroad?

Alexland

necronom wrote: »

I do keep checking savings accounts, but current accounts seem to offer better rates than savings ones. A lot have really low limits, like 5% on the first £2,500, which is a total waste of effort.

With the £100 each introduce a friend switching bonus the Nationwide Flex Direct is not a waste of effort. You also get access to their 5% regular saver.

Alex

ValiantSon

necronom wrote: »

Just over a year ago I put £15,000 into a Peer to Peer lending account, and got about £700 - £750 interest over the year. I'll lose 1% when I withdraw, and there is a risk with it. I do keep checking savings accounts, but current accounts seem to offer better rates than savings ones. A lot have really low limits, like 5% on the first £2,500, which is a total waste of effort.
I'll keep looking.

It isn't really that much effort, and you will be better off than simply holding all of your money in an easy access account.

redpete

necronom wrote: »

Thanks for the replies. I thought it must sound better than it is.

I'll have to wait for our rate to go up, which isn't going well for me. I think we had double figures in the 70s and 80s. Since I've started having savings the rate has just been going down.

And when I had a mortgage in the 80s I was paying up to 17.5% interest on it, now I'm paying something like 2.7%.

jamei305

Normally people in countries with rampant inflation and consequently very high interest rates seek to move their money overseas, not the other way around.

Jasonh

Hi - I just posted a similar question and was forwarded here.

Ignoring the example of Argentina here, let's say, for example, you wanted to take advantage of a moderately better exchange rate from a more economically stable country like Canada/Australia where base rates are 1.5%. Has anyone come across a way to do this from the UK?

I'm not interested in the detailed risks associated such as Forex fluctuations, fees, differing compensatory protection etc as I can judge those on a case-by-case basis; just interested in whether anyone knows of a way/service to do it?

Thanks,

Jason

ValiantSon

Why on earth would you want to do this?

No, I don't have a specific answer for you because I would never even begin to do as you propose. The marginal gains are likely to be eroded by exchange rates; there are physical barriers to accessing the banks in those countries; and you don't benefit from retail consumer protection either (as you do in the UK).

mije1983

Jasonh wrote: »

Hi - I just posted a similar question and was forwarded here.

Ignoring the example of Argentina here, let's say, for example, you wanted to take advantage of a moderately better exchange rate from a more economically stable country like Canada/Australia where base rates are 1.5%. Has anyone come across a way to do this from the UK?

I'm not interested in the detailed risks associated such as Forex fluctuations, fees, differing compensatory protection etc as I can judge those on a case-by-case basis; just interested in whether anyone knows of a way/service to do it?

Thanks,

Jason

Ok....


Find a bank that doesn't have a 'residents only' restriction > open account > lose money when you convert into the applicable $ > deposit in said account > gain a small amount of interest > lose money when you convert back to £ > end up with less than you started with.


I can't see why anyone would even consider this for countries who's top savings accounts are not that much better than ours, and with a bit of work can be beaten right here in the UK.

https://www.ratehub.ca/savings-accounts/best-savings-accounts

https://www.finder.com.au/savings-accounts/best-savings-accounts

Like the UK, the best rates come with strings attached or an (even shorter than ours) 'bonus' rate timeframe.

jsinc

Jasonh wrote: »

...let's say, for example, you wanted to take advantage of a moderately better exchange rate from a more economically stable country like Canada/Australia where base rates are 1.5%. Has anyone come across a way to do this from the UK?

Australia - technically possible to open one and transfer in, but can't access funds remotely. I still have a westpac savings accout from when I lived there as a permanent resident, but had to visit branch in person with lots of ID including visa to formalise things/activate.

(appreciate you said to ignore practicalities but most aussie accounts have monthly fees and I haven't added to it as higher rate can be more than wiped out by one day move in GBP/AUD let alone extra/inbuilt transfer fees. If you want to bet on changes in rate differentials would be simpler to just bet on the cross rate, although I wouldn't recommend it)

steampowered

It is certainly possible. You would simply open a savings account in that country, use a currency broker to exchange your money and away you go.

However - as you seem prepared to lose part of your money on exchange rates - perhaps you should consider investing rather than saving?

A balanced portfolio of stocks and shares is very likely to give you a better return than savings - the average long term return on stock markets is about 8-10% per year.

And investment returns can be effectively tax free through an ISA (up to ISA subscription limits), whereas I imagine your interest from Argentina would be taxable.

Of course you would have to accept the risk of your investments might decrease in value, especially in the short term, but it sounds like you are prepared to take risk to get better returns?

AnotherJoe

Jasonh wrote: »

I'm not interested in the detailed risks associated such as Forex fluctuations, fees, differing compensatory protection etc as I can judge those on a case-by-case basis;

Are you interested in the fact that a two way conversion would lose you more than you'd gain in several years of a minor increase in interest rate? And that you can't judge forex fluctuations on "a case to case basis" because if you could you'd be a mega billionaire and not need to get involved in a cockamamie scheme like this ..