Offshore Bank Accounts

[Stringent]

Well as most of you know the intertest rate in this country sucks big time for savings. They moan about people being in debt then reduce the interest rate so we spend more. Anyways, the little money I have in my savings isn't earning a lot. So should I look to opening an off shore account in another country that has more interest? How does it work? Can anyone shed any light on this?

[herulach]

How much are you earning on it? 5% isnt hard even without looking at long term/delayed access accounts

[Stringent]

The banks interest rate are 4.33% AER (Whats AER?!?!), 4.25% Gross, and 3.4% NET.

[herulach]

AER is annual equivalende, you can use it to compare between banks if they give you silly bonus things and stuff. ING direct offer instant access at 5%AER, but i think youd struggle to find something better that you can actually get decent access to (rather than 2 week notification or minimum term or something).

If its a substantial amount of money, consider property, or go see your IFA, as far as i know the main advantage of off shore is the tax free ness, rather than huge interest rates.

[Twigman]

I believe you will probably need an offshore address (for statements to be posted to if not for anything else...).

[ikonia]

If you had enough money to warrent an offshore bank account you'd have enough money to have a financial adviser who would have suggested and delt with this already for you.

If your not happy with the %5-ish rates then perhaps look at investing your savings in something like say bonds, stock, ISA's, anything really, but obviously the more the profit the more the risk

[luap.h]

check out www.moneysavingexpert.com - it has loads of info on what the best place for your money, cash ISA's, bank account etc

[Twigman]

Premium bonds!
They rock...well I like them for the "oh look...a nice cheque has just come through the letter box" feel...

[Swafe]

I like the way you buy them and you never ever get anything off them.

Actually, I dont like them

They smell

[Endymion]

I like the way you buy them and you never ever get anything off them.

Actually, I dont like them

They smell

I've had plenty of cheques through the post. I guess I'm just lucky.

[Swafe]

Yup, moms had some for 40 years and never ever had one, nor have I

[Stringent]

Hmm First Direct have an AER of 5.2% on their e-savings ....

Anyone point me for a good site about premium bonds?

[schmunk]

Anyone point me for a good site about premium bonds?

This one do?

[ikonia]

Stringent if you really want your money to work for you, don't ask people on forums, go and see a financial adviser, or at worst your bank manager.

[Stringent]

I wasn't after hard core financial advice. It was just a general question. A thought, which I threw out there. I was discussing generally, isn't that what 'General Discussion' means?

Thanks to all for your help and thoughts anyway thus far.

[TiG]

Think Ikonia is just trying to ensure you get the best financial advice. I think your struggle to get offshore accounts with less than £100000 (don't know never looked - but imagine there would be entry restrictions)

Hardcore financial advice is offshore accounts and thats why the impression is you've got lots of money to store away. My understanding is that offshore accounts are to avoid tax/hide money much more than earn interest....

Lots of good links on the link luap.h suggested, i'd say check that out.

Just remember some investments can go up as well as down DYOR.

TiG