The invention of price comparison websites has certainly made my life easier on some levels. Personally I hate having to trawl through corporate literature and decipher the differences in small print between one car insurance provider and another! I like it when I can just look at the headline prices of all providers’ offerings and make my decisions based purely on cost!
However, as soon as you’re looking for something a little more complex than comprehensive car insurance, price comparison sites begin to lose their usefulness. For example, as an expat looking for health insurance perhaps, there is no way you could make your decision based purely on price alone. What about pre-existing conditions, what about the breadth of cover offered, what about excesses and exclusions for each individual member of the family…?
And when it comes to finding the best offshore bank account as an expat who really needs international access and maximum flexibility, there isn’t even a way you can easily compare and contrast the offerings from the leading providers such as HSBC, Barclays and Lloyds TSB. So, whilst price comparison sites are useful sometimes, you also need a friendly review to help you occasionally…which is why we’ve decided to offer up an overview of the features, benefits, downsides and costs associated with the most popular offshore bank accounts for expats.
Whilst there are certainly many other banks offering a range of international accounts for expatriates, the most well known by far are HSBC, Barclays and Lloyds TSB.
For the purposes of this comparison article it’s important for us to mention a few things. Firstly this article does not constitute advice, despite any advertising that appears around the article it has not been sponsored, and finally we’re going to be looking at the premium or premier international/offshore bank account offerings from each of the three banks for comparison purposes. Before you take any action that could affect your financial position, you are encouraged to seek professional, qualified and independent advice. The information contained in this article is based on information provided on each banks’ website, and Shelter Offshore is not therefore responsible for the accuracy or otherwise of the data given. Additionally, information could change and rates and figures quoted could alter which is why we have provided direct links to each provider so you can compare and contrast the accounts for yourself.
Features, Benefits, Costs & Restrictions of the HSBC Premier Account
A premier account from this provider is an international bank account perhaps suitable for expatriates and/or those working abroad, who require great flexibility in terms of accessing and managing their wealth, and who want a range of additional services to assist them with their international lifestyle.
You have to have a minimum relationship balance of £60,000 (or currency equivalent) to access the benefits of this account which include HSBC’s ‘best rates’ of interest on savings – as opposed to their ‘standard rates.’ You also have ‘Qualified Relationship Managers’ supported by dedicated ‘Premier Associates’ to help you with any queries, and these are available to you 24/7.
You benefit from a preferential charging structure when it comes to foreign exchange and international transfers – but you will be charged £35 each month that your balance falls below £60,000 however, which is nothing more than a nasty account charge – so beware of this.
In terms of the additional benefits you get, they include travel insurance, free global transfers to all eligible HSBC accounts worldwide and preferential rates with international tax experts Deloitte & Touche LLP on the likes of their International Assignment Service.
Features, Benefits, Costs & Restrictions of the Barclays Wealth Relationship Manager Service
The very name that Barclays Wealth have associated with their offshore bank account for internationally mobile expats says it all really – i.e., Relationship Manager Service. In other words, the main selling point that Barclays seem to have attributed to this account is that you can have a close working relationship with an individual who will help you get the very most from Barclays.
You are offered this service by HSBC too (see above) but Barclays make even more of promoting the benefits of this relationship. You can let your relationship manager help you with your banking, financial planning, tax planning and so on…
You need to have £50,000 (or currency equivalent) on deposit with Barclays to get this account however – but this doesn’t have to be in your bank account, it can be in cash or investments with Barclays. There is no account fee each month, you get discounted international online payments, and you can save, bank or borrow in a range of currencies.
Features, Benefits, Costs & Restrictions of the Lloyds TSB Premier International Account
This account is ideal for anyone who needs flexibility of access to their money, who wants to bank in sterling, euro or US dollars and who needs to make international transfers. I.e., it’s the exact same basic structure as offered by Barclays Wealth and HSBC International.
There is no monthly fee as long as the minimum account balance is maintained – the required balance is £2,500 or €2,500 or US$3,500 – and a fee of £20/€20/$30 is applied if your balance falls below this figure. However, unless you’re already a customer of Lloyds TSB, Halifax or Bank of Scotland, you have to prove you have a gross annual income of £50,000 or have at least £25,000 to invest with Lloyds TSB International within 3 months of opening your account to be eligible.
You get additional travel insurance benefits for the whole family, a relationship manager service if you hold a balance of £100,000 (or currency equivalent) on deposit, you get a reduction on airport lounge access membership for one year, and Lloyds also has a ‘concierge service’ which is a telephone support service for account holders.
So, Which Offshore Bank Account is Best?
As you can see, fundamentally all the banks offer the same service. They will give you an account in either sterling, euro or dollar, you can have a ‘relationship manager’ who will try and ‘up-sell’ additional products from the banking group, they will make your bank account as internationally flexible as possible – and then they’ll give you a few bells and whistles to try and turn your head and make you sign up.
So, which one is the best?
Well, if you’re already a customer of Lloyds TSB, Halifax or Bank of Scotland their account is seemingly the easiest to open – i.e., you don’t have to have loads of money on deposit each month to get an account. However, the HSBC account offers you better rates of interest on your savings if you open their account, and they give you value added bells and whistles such as a discount with Deloitte which could be very useful for international tax planning.
Barclays requires you to have a lower amount on deposit than HSBC – and this can be spread across investments rather than just held in low interest earning cash deposits….and so the bottom line is which bank offers YOU, as an individual, more?
If you’re already a customer with any of these banks when you move abroad they will be keen to keep you, so do look into how you can personally and directly negotiate a better deal on your offshore/international bank account with them. A bank is ‘selling’ you a service after all, so if there are features and benefits you want as a customer, make sure you ask.
If you don’t like your current bank, or you want to change, look at which bank is likely to offer you the services you need, which one do you trust more, which one has broader global reach to assist you – and which one’s relationship management service will actually go further than just trying to get you to sign up for additional products from the bank in question.
Finally – Look at What Else is Available
HSBC offers an annual fee free credit card with a rewards programme, Barclays offers a platinum Barclaycard, Lloyds TSB pays interest on some balances and offers a cheque book for added flexibility. So, what would make your banking experience easier and better? Which provider offers the tools and services you want?
You need to think about what would make your life easier as an international/expat customer, and then see which bank offers you the services and benefits most likely to truly help you. There’s no doubt about it, the banks are in direct competition for your money, but if they’re only offering you additional features that you really don’t need or won’t benefit from, why sign up to their account?
Make the decision based purely on what you want and need…don’t be fooled by features or services that appear to be high value, but which are personally meaningless or worthless to you. In other words, look beyond the headlines and examine the terms and conditions!