Our team of experts have chosen those offshore savings accounts they believe to be Best Buys. A selection of those, for which we have arranged links are shown above, whilst products shown with a yellow background are sponsored products.
Most offshore savings accounts are now very similar to those available
on the UK mainland. Offshore accounts are simple to use and have
straightforward terms and conditions. You can operate many of the
accounts by internet, post and telephone even if you don’t live near the
offshore branch of one of the banks.
Just like mainland
accounts, there are fixed and variable rates to choose from. Instant
access accounts are usually best if you think you’ll want your money in a
hurry. If you’re saving up for something special, then a longer term
notice account may be better. Up to 180 days is usually the longest
notice period on variable rate accounts. Sometimes variable rate bonds
are available for longer periods.
Variable rates can go down as
well as up. Fixed rates, on the other hand, stay at the same interest
rate for a pre-determined period of time, usually between three months
and five years.The main difference between offshore and mainland accounts is likely to be in the depositor protection scheme.
This scheme applies should the bank or other institution you have put
your savings into run into difficulties and be unable to pay back your
Offshore banking simply means holding an account in a country where you don’t live. Many offshore banking centres tend to be small islands or principalities with favourable tax regimes – such as the UK crown dependencies of Jersey, Guernsey, the Isle of Man and Gibraltar.
Because costs are lower to banks operating in these offshore centres, they can offer higher rates of interest than those offered by their UK-based parent companies. They also have reputations as tax havens because you may be able to pay less tax than if you held your savings in the UK (depending on your situation).
Banking offshore offers notable advantages if you live and/or work abroad, or own property overseas.
Just because you bank outside of the UK, it doesn’t mean you avoid paying UK income tax on any interest you earn.
If you live and work in the UK, and receive interest from an offshore bank or savings account, you should declare it to HM Revenue & Customs on your Self Assessment tax return.
HM Revenue & Customs are very focussed on customers with offshore bank accounts in an effort to combat tax avoidance by UK taxpayers.
If you are in any way unsure about the tax situation if you have, or are considering an offshore account, you should seek independent advice from an accountant or financial adviser.
Stay in the know with all the latest information, of-the-moment consumer trends, best-in-class products & providers and helpful tools from Moneyfacts.
International money transfer can be vital to the success of your work or home life abroad, but if yo... More
If you’ve decided to take the plunge and start a new life abroad, there’s one key thing you need to ... More
If you thought savings rates onshore were bad, spare a thought for expats living elsewhere – because... More
The Co-operative Bank has come under fire from just about every angle recently, and now it’s gone an... More
For many future retirees, the thought of spending their golden years in the sun is hard to ignore. B... More
Offshore savings accounts are savings accounts which are run from the Channel Islands or the Isle of... More
Nationwide International has increased selected fixed rate bonds by up to 0.20%, catapulting three o... More
Skipton International Ltd has reduced the rates of two of its fixed offshore bonds, but despite this... More
Permanent Bank International has launched two new offshore bonds, one of which has stolen a coveted ... More
Permanent Bank International has launched a new issue of its popular 15 month offshore bond, which e... More
Skipton International has increased rates on its range of offshore savings accounts.... More
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.