Offshore Banking

[oilydan]

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]

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]

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]

If you are already "offshore", what is YOUR definition of "offshore".

[oilydan]

A bank account in IOM or Channel Islands?

[Eric Mc]

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]

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Northern Rock have withdrawn there best rates now, so you missed the boat there

[Norman D. Potato]

At the moment, I would prefer undermattress banking.

[anonymous-user]

Norman D. Potato said:

At the moment, I would prefer undermattress banking.

[rolex]

I think the term "offshore" may mean not declaring the interest in UK

[Eric Mc]

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]

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]

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]

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]

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. Although I wouldn't know where to start looking for bakin news, let alone understand it - that's what bankers are for

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]

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]

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]

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]

Bumpety bump....for the work-day crowd.

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

[The Fly Fisher]

Oh, you said banking, sorry...