Offshore Interest Rates More Attractive

It’s true that you can potentially gain access to more attractive interest rates and returns on investments by going offshore: we show you how

In this current economic climate it’s getting increasingly hard to find a bank account or savings scheme that will return interest rates that even beat inflation – therefore, the news that offshore interest rates are more attractive should be music to your ears!

Expatriates who have any money on deposit in their new nation of residence or even in their old nation of domicile, may well find that if they choose to offshore their excess cash, their savings and their investments, that they can have access to far more attractive rates of interest and returns in general.

But how do you actually find these higher interest returning savings and investment schemes, where can you find an offshore bank account that pays interest on deposits, and how can expatriates take advantage properly of all the offshore financial facilities available to them?  In this report we take a closer look at the world of offshore money for expats…

Offshore Bank Accounts and Interest Rates

All high street banks now offer their expatriate client base access to offshore bank accounts to give them the banking flexibility that they need when they move to live, work or even retire abroad.  The most straightforward accounts are really akin to straightforward onshore deposit accounts and therefore are not attractive in terms of the interest they offer.  However, because banks want expatriate business, many offer facilities such as the ability to directly link your offshore basic bank account to a better interest paying savings account.

Your day-to-day account can be fed from this savings account, ensuring that the majority of your cash stays in the account that pays interest out.  The interest rates available tend to be slightly more attractive and positive than available onshore…however, to really gain access to better offshore interest rates you need to seek out specific savings schemes or investment alternatives.

Getting the Best Interest Rates on Your Offshore Savings

Other than the money you have on deposit for every day expenses and a sum of money you ideally have close to hand for use in the event of emergencies, all other money should be saved or invested slightly differently – i.e., with a view to getting the best returns you can to enable that money to grow healthily.  Therefore, when it comes to saving as an expatriate it is really positive to learn that the offshore world offers you many interesting, attractive and exciting opportunities to diversify the way you stash your cash so that it has the best access possible to attractive interest rates.

If you’re saving for the long term towards retirement for example, and if you’re willing to lock your money in for the longer-term, there are a great many institutions in even the most well respected offshore jurisdictions such as the Isle of Man, Jersey and Guernsey that will offer you excellent rates of return on your capital, depending on how long you’re willing to lock in for.

An independent financial adviser will be able to help you find which range of products best suit your needs.  Areas to be taken into consideration when seeking the very best returns possible include your attitude to risk, how long you can realistically lock in for, where you’re currently resident and whether you have a lump sum to save or you would like to drip feed an account monthly or annually perhaps.

Advisers can guide you towards either a range of products or even a specific savings scheme that best suits you only after they have spoken to you – because you are unique and so will your savings portfolio need to be if it is going to be best aligned and developed to meet your specific needs.

Getting the Best Returns on Your Offshore Investments

You can also now take your onshore pension offshore to try and attract better returns through a scheme called QROPS (qualified recognised overseas pension scheme).  It is backed by the British government, and investors who are putting their money aside for retirement abroad find that along with better potential returns, they can benefit from not having to take an annuity upon retirement, of being able to will excess wealth from their pension to their heirs, of being able to retire when they want, and of escaping the watchful eye of the British tax man after five years.

This scheme is very exciting and it is one that all expats who have an onshore pension pot worth in the region of £50K plus should explore with an adviser.  if you want more information.

And finally, if you want to invest your money into the stock market, or you want to access anything other than straightforward savings policies so that your money has a better chance to grow offshore, then there are a whole host of schemes available to expatriates.  Basically the whole investment world opens up to you as soon as you go overseas – you are no longer restricted to investing your money in your own nation’s stock market for example, you are no longer restricted to investing in your own currency, and you suddenly have a wealth of choices to match your own risk profile and your own investment objectives.

To explore all your options for getting better interest rates offshore, for gaining access to more attractive investment alternatives and finding how best to maximise your expatriate advantage, your best first step is to speak to a financial adviser who understands offshore money matters.  To that end, if you want advice, contact us and we will ask a qualified adviser in your region to .  You are of course never under any obligation to heed their advice, but you can just tap them for the information you need about how best to structure and align your finances.