Offshore savings Updated:
A range of offshore savings accounts are available that are designed specifically for customers who prefer to keep their money outside the UK.
Here are some quick tips on how offshore accounts can work for you.
Offshore savings accounts are run from the Channel Islands or the Isle of Man or Gibraltar.
There are various types of offshore savings accounts tailored to satisfy different needs, for example:
You can set up the accounts even if you live and work in the UK as a UK resident. Offshore savings may be notice accounts or no-notice accounts and can offer annual or monthly income (monthly income accounts may suit you if you are looking to use interest payments to supplement your regular income), and can pay fixed or variable rates of interest.
A wide range of providers offer offshore accounts, many of which are operated by subsidiaries of the major banks.
It may be possible to operate these accounts via a branch, telephone, post or online, although always check the operational details to be sure the deal suits you.
The two key points to remember when considering an offshore account are:
Check with the provider as to whether you will be protected by an alternative deposit protection scheme, depending on where the bank is located.
HM Revenue and Customs will dish out hefty fines to anyone they suspect of hiding taxable income.
When looking for an offshore account, consider the same factors as you would when looking for a UK-based product. As well as the rate and investment amounts, look at whether you want to receive interest annually or monthly and whether you want a fixed or variable rate.
Check the provider's terms and conditions to avoid falling foul of any restrictions or penalties once the account is running.
Compare savings accounts to find the best deals with our best buy tables or whole of market offshore provider search: find the best offshore savings rates.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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