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Offshore savings: where to now?

Offshore savings: where to now?

Category: Offshore savings

Updated: 02/06/2010
First Published: 02/06/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The offshore savings market has suffered a double blow this week as two providers have announced their intentions to leave the sector.

Yesterday, Irish Permanent said it was to close its branch on the Isle of Man by the end of the year, ending 17 years of business on the island.

That news was followed by today's announcement from Northern Rock that it was to close its offshore banking operation in Guernsey, effective from 2 September later this year.

Customers will have three months to close their accounts and will be contacted with advice on how to best proceed. Northern Rock said it will make it as easy as possible to close their accounts.

Gary Hoffman, chief executive of Northern Rock, said the company's board of directors considered the closure of offshore operations as a necessary step as it continues to prepare for a return to private ownership.

The offshore sector came under the spotlight last year, as more than ten thousand investors came forward to divulge their tax affairs as part of HM Revenue & Customs' New Disclosure Opportunity.

More than 300 UK banks were also asked to hand over information on offshore customers as part of the effort to claw back millions of pounds in unpaid offshore taxes.

While the market has contracted, there are still offshore accounts around which offer a competitive rate of interest.

They include:

Offshore Fixed from Anglo Irish Bank (International), which is a 12 month bond that offers a rate of 3.40% on a minimum investment of £5,000.

Offshore Fixed from Abbey International, which is an 18 month bond that offers a rate of 3.08% on a minimum investment of £100,000.

Offshore Variable from Alliance & Leicester International, which is a 50 day bond that offers a rate of 3.00% on a minimum investment of £25,000.

Visit our Offshore Savings Account best sellers chart to see more offshore savings accounts that are available.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.