Can I open a savings account abroad?

Wildsound

Assuming you're a retail saver/investor looking to do this with a relatively small amount of cash (anything below £200k), the time and effort you spend in doing something like this without any guarantee of success (or marginal gains), you might as well spend the same amount of time buying a multi-pack of ice-creams and selling it to the public at a higher price, for a better return...

Voyager2002

People who are willing to accept some risk, and want to benefit from different economic conditions (such as different interest rates) around the world, can do so by means of investing. Bond funds exist for this purpose: someone with an above-average risk appetite could buy government-backed bonds from Argentina.

londoninvestor

Voyager2002 wrote: »

People who are willing to accept some risk, and want to benefit from different economic conditions (such as different interest rates) around the world, can do so by means of investing. Bond funds exist for this purpose: someone with an above-average risk appetite could buy government-backed bonds from Argentina.

I reckon this is the only viable thing a retail investor could do that doesn't result in being eaten alive by fees, or running into administrative impossibilities.

In terms of the investment case, you'd need to ask yourself "why do I think interest rate parity will be violated for this pair of currencies?", i.e. why would the FX rate not fall to cancel out the interest rate differential? That's not a purely rhetorical question - Brexit, or a recovery in the foreign economy are viable answers to it - but it makes sense to consider IRP as your base case and ask why this currency pair should deviate from it.