Offshore Banking
Author
Discussion

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
Can anyone offer advice as to which offshore banks are best for setting up a savings account?

I have been checking on moneyfacts.co.uk for the best rates but I reckon that the bankers here should be able to point me in the right direction of a decent (read - SECURE) bank/account. I don't want to give specific details on the forum but if you can genuinely offer advice I'd be happy to by pm/e-mail.

Thanks

smilerbaker

4,071 posts

245 months

Sunday 5th October 2008
quotequote all
oilydan said:
Can anyone offer advice as to which offshore banks are best for setting up a savings account?

I have been checking on moneyfacts.co.uk for the best rates but I reckon that the bankers here should be able to point me in the right direction of a decent (read - SECURE) bank/account. I don't want to give specific details on the forum but if you can genuinely offer advice I'd be happy to by pm/e-mail.

Thanks
er, why would you want to, the UK banks are offering far far higher interest rates then any euro banks.

Unless your trying to hide money of course.

For secure northern rock, or the post office, both guarantee 100% of your savings.

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
Post office offers 5.75%
Northern Rock 6.00% in an ISA

Compared to...

Kaupthing Singer & Friedlander (IOM) 6.86%
HSBC Offshore 6.00%

(All AER)

I'm living abroad so tax is not an issue.

Eric Mc

125,747 posts

295 months

Sunday 5th October 2008
quotequote all
If you are already "offshore", what is YOUR definition of "offshore".

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
A bank account in IOM or Channel Islands?

Eric Mc

125,747 posts

295 months

Sunday 5th October 2008
quotequote all
You don't say where you are Tax Resident so there may be better and more appropriate locations than the Channel Islands and/or the Isle of Man.

Also, where you are tax resident will have a bearing on the taxation treatment of interest income from your "offshore" account.

smilerbaker

4,071 posts

245 months

Sunday 5th October 2008
quotequote all
a quick search (eg the first page) of hsbc's site shows this

"Earn 10% AER/gross fixed for 12 months on our Regular Saver, for a guaranteed return on your savings. Save between £25 and £250 a month for 12 months. Only available for HSBC Premier, HSBC Bank Account Plus and Passport Account customers."

So thats 10% then

and

Post office
"Cash ISA - 6.25%1AER2 one of the highest tax-free ISA rates available"


Northern Rock have withdrawn there best rates now, so you missed the boat there smile

Norman D. Potato

529 posts

217 months

Sunday 5th October 2008
quotequote all
At the moment, I would prefer undermattress banking.

anonymous-user

84 months

Sunday 5th October 2008
quotequote all
Norman D. Potato said:
At the moment, I would prefer undermattress banking.
rolleyes

rolex

3,120 posts

288 months

Sunday 5th October 2008
quotequote all
I think the term "offshore" may mean not declaring the interest in UK wink

Eric Mc

125,747 posts

295 months

Sunday 5th October 2008
quotequote all
He stated he wasn't a UK tax resident so there should be no need for him to declare this income to the UK tax authorities.

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
I'm resident in Dubai. As far as UK tax is concerned - I don't pay any, not on savings interest nor any other income, whether it is earnt in the UK or not.

10%, is that right? Linky please.

Problem with ISAs is their ceiling amounts of 3600 per year. I want to put this much away every couple of months.

Olf

11,978 posts

248 months

Sunday 5th October 2008
quotequote all
oilydan said:
Post office offers 5.75%
Northern Rock 6.00% in an ISA

Compared to...

Kaupthing Singer & Friedlander (IOM) 6.86%
HSBC Offshore 6.00%

(All AER)

I'm living abroad so tax is not an issue.
Check out the news on KS&F. They might be a little higher risk at the moment than HSBC.

LC23

1,315 posts

255 months

Sunday 5th October 2008
quotequote all
Dan - even if you wanted to, you cannot contribute to an ISA as a non UK tax resident.

And you are still liable for UK tax on UK source investment income.

Edited by LC23 on Sunday 5th October 15:13

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
Olf said:
Check out the news on KS&F. They might be a little higher risk at the moment than HSBC.
This is exactly the type of advice I was after. thumbup Although I wouldn't know where to start looking for bakin news, let alone understand it - that's what bankers are for smile

So far then we have HSBC Offshore offering 6% AER, any number of lesser known (at least to me anyway) banks offering a little more (but at a higher risk) and Smilerbaker's HSBC at 10% AER.

I would like to know more about the KS&F's of the banking world but I guess it's a bit of a stupid time to ask who thinks what bank will be a 'safe' bet at the moment, wouldn't it?

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
LC23 said:
And you are still liable for UK tax on UK source investment income.
Really? I was told a little while ago that no UK earnt income is taxed, not house rental income, not investment income, not interest income. Anything earnt while non-domecile is not taxable.

If this is the case then I will need an offshore account then.

Eric Mc

125,747 posts

295 months

Sunday 5th October 2008
quotequote all
You were told wrong.

Most income earned in the UK atributable to non-UK residents will suffer UK tax at sopurce. If interest received, the bank will deduct tax at 20% on the interest. If rental income, the rental agent is obliged to deduct tax before passing on the rent to the overseas landlord.

The overseas individual may be able to obtain a tax credit in his home country taking into account the UK tax already paid.

oilydan

Original Poster:

2,030 posts

301 months

Sunday 5th October 2008
quotequote all
But I filled out a form for 'Non Resident Landlords' and the agents, once given the OK by HMG, didn't deduct anyting from my rental income?

This is why I believed the rest of the information given.

Time to do some proper research then....

oilydan

Original Poster:

2,030 posts

301 months

Monday 6th October 2008
quotequote all
Bumpety bump....for the work-day crowd.

Realised posting this on a Sunday wasn't the best idea!!

The Fly Fisher

205 posts

218 months

Monday 6th October 2008
quotequote all
Oh, you said banking, sorry...