Best savings accounts for American Expats

sv511

Amercians banking in the UK must use Foreign Account Tax Compliance Act (FACTA) approved banks.  Not only must they be approved, they must be willing to do the paperwork.   Many are.  For example Lloyds Bank and Principality Building Society.    Some appear  not to, for example Cahoot. 


The best cash ISA I've found is Principality Online Bonus 5  at 4.75%.   This is confirmed to work.

The best Easy Access Saver I've found is Virgin Money Private Savings also at 4.75% for balences under £500,000.   You must hold their private current account at £15/month.   The current account pays 4%.   I have not tried opening an account yet, so it might not work. 

 



FATCA Foreign Financial Institution List excerpt.  

sv511

Does anyone know of a FACTA compliant bank  or building society that offers a better deal?  

TheBanker

sv511 said:

Amercians banking in the UK must use Foreign Account Tax Compliance Act (FACTA) approved banks.  Not only must they be approved, they must be willing to do the paperwork.   Many are.  For example Lloyds Bank and Principality Building Society.    Some appear  not to, for example Cahoot. 

Cahoot is just a trading name of Santander UK plc. Not sure whether they would need to be listed in their own right?

AmityNeon

Choose the best rate (https://moneyfactscompare.co.uk/) and then apply. In most cases you likely won't encounter any problems; just confirm your citizenship(s), tax residencies and supply your SSN/TIN — if an application process doesn't allow this, then disregard that provider.

sv511

TheBanker said:

Cahoot is just a trading name of Santander UK plc. Not sure whether they would need to be listed in their own right?

I don't think so.  Virgin Money are not on the list but Clydesdale bank are.


I tried to sign up for a savings account with Cahoot.  After setting country of birth  to the USA, I was not able to set my Country of Tax Residence  to the UK.       The only choices are  American Samoa, Guam,  Northern Mariana Islands, Purto Rico, United States and US Virgin Islands. 

I could try calling them,  but I don't really want to.  If they aren't set up for expats, the accounts will be nothing but trouble. 

AmityNeon

sv511 said:

I tried to sign up for a savings account with Cahoot. After setting country of birth to the USA, I was not able to set my Country of Tax Residence to the UK. The only choices are American Samoa, Guam, Northern Mariana Islands, Purto Rico, United States and US Virgin Islands.

Quirk of Santander's systems. You must be a tax resident of the UK, so you don't have to state that. Other providers can instead ask something along the lines of, "Are you only a tax resident of the UK?", with a binary choice of Yes/No as a response; the implication being that obviously applicants must be a tax resident of at least the UK to be eligible for an account.

sv511 said:

I could try calling them, but I don't really want to. If they aren't set up for expats, the accounts will be nothing but trouble.

How could you possibly think they aren't set up for expats considering they're providing an explicit list of foreign countries for tax residencies? It's only if you aren't tax resident in your birth country (USA) that you then have to subsequently provide proof of this so they can amend their records after the fact; you are forced to register as tax resident in the US if you provide a US birthplace, so it's harder for expats to ignore FATCA.

AmityNeon

Easy Access: 4.87% AER
Oxbury - Easy Access Account Special Edition 1

Cash ISA: 4.92% AER
Plum Cash ISA
(it's only their investment accounts that prohibit US citizens/residents)

gt94sss2

sv511 said:

The best cash ISA I've found is Principality Online Bonus 5  at 4.75%.   This is confirmed to work.
 

You probably already know this but while interest in an ISA is considered tax free by UK authorities, the IRS does not recognise it as such.

SuzeQStan

gt94sss2 said:

sv511 said:

The best cash ISA I've found is Principality Online Bonus 5  at 4.75%.   This is confirmed to work.
 

You probably already know this but while interest in an ISA is considered tax free by UK authorities, the IRS does not recognise it as such.

Sure but total income has to exceed $120000 before anything additional tax wise needs to be paid.  

SuzeQStan

sv511 said:

.

The best Easy Access Saver I've found is Virgin Money Private Savings also at 4.75% for balences under £500,000.   You must hold their private current account at £15/month.   The current account pays 4%.   I have not tried opening an account yet, so it might not work. 

OP - you can just have the standard Virgin M account to qualify for opening a Virgin ISA. The m account does not have a monthly fee.

EdSwippet

SuzeQStan said:
...

Sure but total income has to exceed $120000 before anything additional tax wise needs to be paid.  

Not exactly. You can exclude £126,500 (for 2024), but only if it is earned income. Interest, dividends, capital gains, rental income, pensions, and so on, whether inside an ISA or outside, are all unearned income when it comes to US tax.