|
|
 |
The
useful and the good
At first glance offshore savings accounts can seem to be all
the same – but discerning savers can profit from the best
designed products. Investment International picks the 10 offshore
deposit accounts and bonds we think are most useful for expats.
By Tim Hyam.
To say
that all savings accounts are the same is about as silly as
saying that all men’s suits look the same. True, every
suit has a jacket and trousers. But just as there are thousands
of different fabrics, cuts and tailors, so too is there a wide
range of savings products – and only some of them will
fit you.
All the accounts in our Top 10 are “off-the-peg”
products. But they stand out from the crowd of offshore deposits
as being especially expat-friendly. Some of them are innovative;
others have been around for a while but are classic savings
products, cleverly tailored to suit expats’ needs.
Britannia International – Deferred Interest account
Minimum deposit: £25,000
Interest rate: Currently 5.10% gross/AER. The
variable rate is guaranteed to be at least Bank of England base
rate for the life of the account.
Key features: Unlimited penalty-free withdrawals
after first six months. Account can be closed any time after
two years. Interest accrues daily but is paid only on closure
of the account.
Investment International says: Britannia International
was the first to come up with this bright idea for the offshore
market to help expats plan their tax more efficiently. Account
holders can postpone when they receive their interest, thus
enabling them to choose when to create a “taxable event”.
The account is targeted at customers whose tax position is expected
to change over the next few years, either because of a change
in their income level or their circumstances, such as retiring
or going to work abroad. Britannia’s innovation has proved
popular, and several other provider’s have included similar
accounts in their range, including the next three in Investment
International’s Top 10.
Contact: +44 (0) 1624 681 100 www.britanniainternational.com
Bradford & Bingley International – Accumulation
account
Minimum deposit: £10,000 or
Euro10,000
Interest rate: From 4.45% to 4.85% gross/AER
(sterling); from 1.80% to 2.00% gross/AER (euro)
Key features: 60 day notice for withdrawals.
Interest accrues daily but is paid only on closure of the account.
Minimum transaction of £250 or Euro1,000.
Investment International says: This account offers the option
of deferred interest for savings in euro. The comparatively
low minimum deposit also makes it attractive to some customers.
For sterling savers, the 60-day notice period can be waived
at the cost of a penalty equivalent to the value of 60 days’
interest, but this option does not apply to the euro account.
Contact: +44 (0) 1624 695 000 www.bbi.co.im
Alliance & Leicester International – Deferred
interest account.
Minimum deposit: £10,000
Interest rate: From 4.55% gross/AER (£10,000)
to 5.20% gross/AER (£100,000 plus)
Key features: 180 day notice for withdrawals for the first three
years; instant penalty-free access thereafter. Interest accrued
daily but paid only when the account is closed.
Investment International says: This variation on the deferred
interest theme offers a very attractive rate on interest for
larger deposits and easy access to funds after three years.
Contact: +44 (0) 1624 663 566 www.alliance-leicester.co.im
Anglo Irish Bank – Privilege 90 Accrual
Minimum deposit: £5,000/$5,000/Euro5,000
Interest rate: 5.00% gross/AER
Key features: Sterling, US dollar and euro
accounts available. Interest accrues daily but is paid on closure
of the account. 90 day access.
Investment International says: Probably the most flexible of
the deferred interest accounts on the market. This account is
available in three currencies and currently pays a whopping
5.00% interest for all deposit levels, though this rate is variable.
This account has the relatively low minimum deposit level that
Anglo Irish Bank applies to all its offshore savings products.
Contact: +44 (0) 1624 698 000 www.angloirishbank.co.im
Yorkshire Guernsey – Rollover Bond
Minimum deposit: £5,000
Interest rate: 5.00% gross/AER
Key features: 12 month bond that rolls over
for a further 12 months. Partial withdrawals only possible during
“rollover month”. The bond can be cashed in after
the first three months, incurring a 90 day interest penalty.
Investment International says: This fixed-rate
bond is designed for savers who want to make a long-term savings
commitment at a high interest rate but also want the opportunity
to increase or reduce the savings in the bond once a year. The
interest rate is fixed and the initial term runs from the date
the bond is opened until the end of the corresponding month
one year later. At the end of the one year term you can roll
over for another year at the rate, which is reset at that time.
During this rollover month, savers can increase or decreased
their investment without penalty. You can continue rolling over
for further years for as long as Rollover Bond remains available.
Contact: +44 (0) 1481 710 150 www.yorkshireguernsey.gg
Britannia International – Manchester United International
Saver
Minimum deposit: £250
Interest rate: From 3.25% gross/AER (£250)
to 4.55% gross/AER (£25,000)
Key features: 10 instant withdrawals a year.
Champions league bonus interest: 0.25% for reaching knock out
stage; 0.50% for quarter finals; 1.00% for winning the trophy.
Investment International says: This new account is the only
one of its type in the offshore market. The account pays savers
a bonus linked to the performance of Manchester United Football
Club in the Champions League, as well as a reasonably attractive
interest rate. Britannia International also pays a bonus towards
investment in the team, its football academy and the general
development of the club.
Contact: +44 (0) 1624 681 100 www.britanniainternational.com
Anglo Irish Bank – Privilege Bond
Minimum deposit: £5,000/$5,000/Euro5,000
Interest rate: 5.00% gross/AER (sterling);
from 3.25% to 3.60% gross/AER (US dollar); from 2.35% to 2.60%
gross/AER (euro)
Key features: Bonds available in 12-, 18-,
or 24-month maturities. Bond holders can withdraw 20% of their
money a year without penalty.
Investment International says: This set of
bonds was set up for savers who want to retain partial access
to their capital. The fixed interest rates are also very attractive.
Contact: +44 (0) 1624 698000 www.angloirishbank.co.im
Abbey International – Gold Account
Minimum deposit: £5,000/$7,500/Euro7,500
Interest rate: From 1.56% AER for £5,000
to 4.11% AER for £1,000,000 plus.
Key features: Instant access. Chip and pin
VISA debit card. No banking charges for normal transactions
if balance remains above minimum deposit level.
Investment International says: An excellent
day-to-day account, offering a gold visa card and up to £500
cash available 24 hours a day in local currency from cash machines
without charge. What’s more, VISA transactions are not
deducted until the end of each month, so this account allows
you to earn interest on the money you have spent on your VISA
card until the month end.
Contact: +44 (0) 1534 885 100 www.abbeyinternational.com
Bank of Scotland International – Capital Guaranteed
Savings Bond 11
Minimum deposit: £10,000
Interest rate: Half of capital is in a one-year fixed-rate account
paying 10.00% gross/AER; the other half is invested for five
years and will benefit from 70% of the percentage rate of increase
of the FTSE100 Index over that period.
Key features: Sterling only
Investment International says: This product gives savers the
chance to earn potentially higher returns than are available
from standard savings accounts while your initial investment
is 100% guaranteed.
Contact: +44 (0) 1534 613 500 www.bankofscotlandinternational.com
United Bank (St Vincent) – High Return Deposit Account
Minimum deposit: £3,000 (“Classic”
account); £130,000 (“Plus” account)
Interest rate: Between 2% and 3% above the
base rate. Currently rates range from 6.75% AER (for £3,000
deposit in three-month notice account) to 7.75% AER (for £130,000
in 12-month notice account)
Key features: Three-month and 12-month notice
accounts available in sterling, US dollars, euro and Swiss francs.
Investment International
says: These interest rates are considerably higher than
competitors. United Bank says it can pay these rates because
it is primarily an internet bank – paper statements are
issued only on request – and because of the nature of
its investments in the UK and Irish mortgage markets. Customers
also can withdraw 10% of their assets without notice or penalty.
Contact: www.united-bank.net
+1 784 457 1431
|
|
|
|
