Where To Invest >200,000 pounds with maximum interest and security?

Matt10101_2

Hey. I recently sold a house to liquidate the cash as I no longer spend hardly any time in the UK, I invested in a savings account with HSBC offshore, but each time you transfer money out of the account, they stop the interest for the whole month. As Im not in the country for more than a month per year, I dont want to pay tax in the UK, I really want to put it somewhere else asap because HSBC wont be paying any interest on it for this whole month!! Any advise that anybody has would be greatly appreciated! :beer:

Lokolo

Go and see an IFA..... https://www.unbiased.co.uk for a list

Cook_County

It is extremely difficult to break UK residence for tax purposes. Where are you resident?

dunstonh

IFA is no real use here. Maximum interest and security suggests savings accounts. Of course, a savings account wont be secure if a regular withdrawal is being made as it will be hit by inflation which is reducing its spending power in real terms but if it is a savings account then an IFA cannot really do anything more than look at moneyfacts and find who the best rates are currently. No different to looking yourself. IFAs are investment advisers not savings account advisers.

There is also the issue of residency which could mean that many savings institutions and IFAs wont deal with the OP any more (post 1st Nov 07 MiFID rules).

Lokolo

Oh right I thought they would do more than just investments when large sums of money are involved, nevermind!

Mr_Mumble

You could keep the money with HSBC and use their serious saver account which pays 4.25% on £100,000+ rather than the online saver. Alliance & Leicester's easy saving offshore account pays 5.35% on £50,000+ but they're a reasonably small bank. Nationwide's instant access account pays 4.5% above £50,000. Just stick any UK bank and "offshore" into google and their offerings will pop up.

As for security check this chart of credit default swap info:



The higher the number the riskier the financial markets think the institution is. You could always split the money between banks if you're worried.

If you're no longer legally considered "ordinarily resident" in the UK you could look at buying gilts as they'll be tax free.

ianmr65

Northern rock Guernsey.

Offshore direct 5.7% annual with 7 days loss per withdrawl, pegged to not fall below BoE base. (letter)

Or Offshore Online 5.15% no penalty, no lower than 0.50% below below BoE base. (online)

Go for information exchange (rather than withholding tax) unless you can prove to them you aren't an eu res, when you won't have to do either then sort out tax, and recedency status with HMR&C if still applicabale, after the end of the tax year you withdraw any intrest.

Effextively 100% safe while it remains goverment owned. In fact safer than HSBC. If you accept that the UK as a whole is less likely to go bust than HSBC, which i do for now.

koru

Mr_Mumble wrote: »

As for security check this chart of credit default swap info:

Thanks, Mr Mumble. Do you know where the figures in the chart were derived and where we can obtain figures for other banks?

Meltdown_2

Or you could buy a load of rice ...

Mr_Mumble

koru wrote: »

Thanks, Mr Mumble. Do you know where the figures in the chart were derived and where we can obtain figures for other banks?

http://forums.moneysavingexpert.com/showpost.html?p=9364943&postcount=69
I got the info from this transcript:
http://ftalphaville.ft.com/blog/2008/03/14/11595/markets-live/

The same MSE thread has other credit default swap figures. CDS numbers do change all the time and aren't widely available (unless you've got a Reuters or Bloomberg terminal handy).

napoleon

I can't believe no-one has suggested investing the lot by buying bank shares, preferably HBOS. It'll be as safe as houses I reckon.