Are offshore savings accounts worth it for expats?
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If you've decided to take the plunge and start a new life abroad, there's one key thing you need to do – make sure your finances are in order. Funding a career change in a whole new country can be costly, so having suitable offshore savings arrangements is vital, helping keep you on track no matter how far from the UK you may end up.
Even though you'll want to open a current account in your adopted country to fund your day-to-day life, chances are you'll still want to maintain a link back home. Offshore accounts are the only option for expats wanting to bank with well-known UK institutions – you can't use a mainland savings account without a UK address – but there are a number of additional benefits too.
For starters, they can be held in different currencies to help make transfers between accounts quick and simple, and they could well be more secure than having an account in the economy you are planning to reside – particularly when you consider the depositor compensation schemes of UK, Isle of Man and Channel Island institutions. You'll often get interest paid gross as well, and while you may still need to pay some kind of tax, it could end up being more cost-effective than if you were to bank elsewhere.
Looking to compare offshore accounts? View today's best offshore savings rates.
It's important to remember that the benefits and conditions of any offshore product will depend entirely on the account itself, your new place of residence and your individual circumstances, with tax rules differing according to country. Luckily, offshore accounts will be managed by specialists in international banking, so you can be confident in getting the help you need. Just make sure to do sufficient research and seek expert advice, and you can be savings savvy wherever you are.
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.