Offshore Savings Accounts and Interest Rates
Published on Thursday, November 12th, 2009
An assumption can often get us into trouble – for example, if we assume that the weather in the Mediterranean will always be warm and sunny and we relocate to Cyprus and discover that actually, in the winter it’s cold and it rains, such an assumption will find us wet and miserable!
When it comes to money matters – any assumption can be highly costly! For example, if you assume that an offshore savings account will offer you the best interest rates simply because it is offshore, you could well be barking up the wrong tree.
Some offshore savings accounts offer more dire rates of interest than you can actually get by staying onshore – and they lure you in to taking out such an account with the taxation saving advantages that you may be able to prosper from with such an account! The moral of the story therefore is that when it comes to your money, it matters so much that you really need to look closely to make sure you’re getting the best deal for your wealth.
It’s not a good time to be an American if you want advice about how to grow your wealth – even if you’re an American living abroad no one will give you financial advice! The IRS is cracking down on tax evasion – and in so doing it is turning American citizens into pariahs in their own country and overseas.
Those who have already retired abroad away from the UK have lost out to the tune of billions just from currency fluctuations over the past two years, and even greater numbers of British retirees are losing up to 40% a year on what they should be receiving from their annuity.
According to one of the most influential studies of expatriates globally, over two thirds of the world’s international citizens are able to save far more intensively once they have moved abroad, directly as a result of their expatriate status.
The pound is going through a period of wallowing at an all time low in the face of major currencies around the world, and so for expatriate Britons, going to live and work abroad can be an escape not only from the gloom of the Great British winter, but an escape from the weakened pound as well.
A recent survey by Halifax International reveals that over 60% of expats have seen the value of their investments and savings pots fall over the past year to eighteen months – which is really unsurprising given the fact that stock markets have suffered, property prices have dwindled and interest rates have dropped to record low levels during that period of time.
No one knows which way economies and stock markets are going to go at the moment, history is writing itself with no help from analysts and those who predict the market for a living. Interest rates are at an all time low in the UK for example, and people’s savings and investments have all taken a battering of late.
According to the Sunday Times there has been a significant increase in demand from those seeking to leave the UK and take their pension abroad with them – in part they put this down to the impending 50% tax hike in Britain, but in part we would say it has a great deal more to do with people being prepared to turn their backs on the UK for good.
The wonderful world of offshore really isn’t so complex, and in many fundamental and important ways it isn’t so different to saving, investing or banking onshore. Having said that, and before going any further, of course it has to be said that the argument between onshore and offshore for your own personal finances is one that you and only you can decide upon with the help and advice of a qualified adviser!
