Brit in Dubai - Best way to save

jam25mack

Hi All.

New here so please be gentle.

I've been living in Dubai for years and really need to start sorting out my finances as I doubt I am getting the best out of what I have. Banking and finances are far far from my comfort zone. I am 40yrs old, in a relationship but with no kids. Marriage and kids are probably on the horizon..... if she gets her way! :rotfl:

Currently I have:

Approx. 60k GBP in a Friends Provident 20yr saving scheme. That probably has another 10yrs left on it.
Approx. 40k GBP in a Santander current account in the UK
Approx. 70k GBP as an end of service payment (with my company). This grows by approx 6k GBP per year (calculated using my current my salary)

Dept wise, lets just say I will be clear by October.

After my debt is cleared I should be able to save around 2k GBP per month, probably nearer 3k GBP.

I have no assets so to speak of other than an old knackered Jeep. No property. My only liquid asset is the cash in the Santander account.

Looking for something low (possibly low to medium) risk, easy to set up and access, decent interest rate where I can continue to pay in on a monthly basis.

Any thoughts?

Cheers

penners324

Why are you carrying loads of debt when you have lots of cash in a current account?
How much interest is that Santander account generating?

Are you tax resident in UK or Dubai? That'll change massively what you should do with your money. Ie Pensions, savings or investment accounts.

jam25mack

I'm not carrying 'loads' of debt.... as I say it will be gone by Oct.... but I do get your point. Clearing that is certainly an option.

I'm not sure about the Santander account, I will check.

As for tax status. I'm classified as a UAE resident and as such, not a UK resident so i'm tax free.

badger09

jam25mack wrote: »

Hi All.

New here so please be gentle.

I've been living in Dubai for years and really need to start sorting out my finances as I doubt I am getting the best out of what I have. Banking and finances are far far from my comfort zone. I am 40yrs old, in a relationship but with no kids. Marriage and kids are probably on the horizon..... if she gets her way! :rotfl:

Currently I have:

Approx. 60k GBP in a Friends Provident 20yr saving scheme. That probably has another 10yrs left on it.
Approx. 40k GBP in a Santander current account in the UK
Approx. 70k GBP as an end of service payment (with my company). This grows by approx 6k GBP per year (calculated using my current my salary)

Dept wise, lets just say I will be clear by October.

After my debt is cleared I should be able to save around 2k GBP per month, probably nearer 3k GBP.

I have no assets so to speak of other than an old knackered Jeep. No property. My only liquid asset is the cash in the Santander account.

Looking for something low (possibly low to medium) risk, easy to set up and access, decent interest rate where I can continue to pay in on a monthly basis.

Any thoughts?

Cheers

jam25mack wrote: »

I'm not carrying 'loads' of debt.... as I say it will be gone by Oct.... but I do get your point. Clearing that is certainly an option.

I'm not sure about the Santander account, I will check.

As for tax status. I'm classified as a UAE resident and as such, not a UK resident so i'm tax free.

As a non UK tax resident you'll struggle (ie won't be able) to open any bank/building society a/c in UK. There are some, but not many, brokers who will open investment a/cs for non residents.

Take a look at NS&I products. Not earth shattering or market leading rates but at least some, though not all, are available to non residents.

https://www.nsandi.com/our-products

What opportunities are there in Dubai?

& Finally, does Santander know you are no longer UK resident?

jimjames

Presumably there is at least £20k in Santander getting 0% interest as even 123 only pays up to £20k. If it's not that account then the whole lot might be 0%.

Definitely the first job to clear debt, it's madness to pay interest on debt while having credit balance paying virtually nothing. That assumes the debt isn't 0% card etc and is at a higher rate than the money in current account.