Many expats can benefit from using offshore bank savings accounts. They are useful for working in different currencies and for gathering interest without deduction of taxes.
By Iain Yule
The best current offering for sterling offshore savers is Standard Bank’s 1.2%, if you have £10,000 and can give 196 days’ notice of withdrawals.
You can beat this rate if you can leave your savings untouched for three years. Skipton International offer 1.5% annually over this period for a £10,000 minimum.
For dollars, Standard Bank pays 1.05% for $10,000 or more, with 196 days’ notice.
Only one offshore bank is offering any interest on euro savings. Kleinwort Benson offers 0.01% for deposits of €100,000-plus.
The rates shown (C) are gross, i.e. with no tax deducted at source, and are ranked by the amount of notice of withdrawal (A) one has to give the bank without it applying an interest penalty (or for the length of term, for fixed-rate accounts), and by the minimum amount (B) left on deposit to qualify for that level of interest.
Rates are subject to change. Rates on the no-notice and notice accounts are variable; those on fixed rate accounts apply throughout the term shown. Data collated on 1 August 2017.
|Sterling No Notice Accounts|
|Lloyds Bank International||None||£5,000||0.20%|
|Sterling Notice Accounts|
|Standard Bank||196 Day||£10,000||1.20%|
|Skipton International||200 Day||£10,000||1.00%|
|Santander International||180 Day||£75,000||0.90%|
|Santander International||95 Day||£75,000||0.85%|
|Sterling Fixed Rate Accounts|
|Santander International||24 Month||£50,000||1.24%|
|Santander International||12 Month||£50,000||0.85%|
|Kleinwort Benson||40 Day||€100,000||0.01%|
|Kleinwort Benson||92 Day||€100,000||0.01%|
|US Dollar Accounts|
|Standard Bank||196 Day||$10,000||1.05%|
|Santander International||180 Day||$50,000||0.85%|
|Standard Bank||96 Day||$10,000||0.80%|
|Santander International||95 Day||$50,000||0.70%|
Remember to check if an offshore bank account is right for you. See the article ‘British Expats – Do You Need An Offshore Bank Account’.