Instant Access and High Interest on Offshore Savings Accounts

The ultimate in terms of the perfect savings account would be instant access, it would pay high interest and it would be offshore for expatriates who want to make the most of any tax savings available to them in their new nation of choice. But does such an account exist?

The fact of the matter is, high interest is a relative concept – because what’s high in interest terms today certainly wasn’t high just three or four years ago! But for expatriates the good news is that there are offshore banks and international institutions willing to pay ‘better,’ more attractive and favourable rates of interest on instant access savings accounts held offshore.

Lloyds TSB International is one bank that has just launched a new product that fits the brief – i.e., an instant access and high interest offshore savings account. But there are restrictions on the account that may not appeal to you, so the good news is that if you are prepared to hunt around and perhaps work with an adviser, you will be able to find the right balance through the right account for your money.

With job insecurity a reality for all of us unfortunately, and the inevitable stress that that brings an extra tough burden for expatriates whose status abroad may be wholly based upon their job, (for example, those whose residence is based upon a work permit perhaps), we tend to want instant access to a chunk of our hard earned savings at the moment. This gives us options if we lose our job for example. We can lay our hands on the cash to fund us through a lean period, we can get access to money to fund repatriation, or we can perhaps use the money to set up our own business.

This means that instant access savings accounts need to be exactly that – instant access – not, one penalty free withdrawal a month, or 30 days notice. But finding an instant access savings account that pays any interest at allonshore is nigh on an impossibility. So, the good news for expats is that there are real and solid alternatives offshore. As stated, Lloyds TSB International has just launched a brand new high(ish) interest offshore savings account, it’s available in pounds or euros with an introductory bonus that allows savers to earn up to a maximum 2.5% gross interest for first 12 months. The offer is not available to those with money already deposited with Lloyds however, and the minimum opening balance is either £5,000 or €5,000 – so it’s not ideal for everyone.

Barclays offers a high interest instant access savings account to international customers only as well – although they are reticent to tell you the actual rate of interest they will pay you until they have all your details! What’s more, you forfeit the 30 days’ interest on your remaining balance if you withdraw your money instantly. HSBC has various offerings for those who need instant access and interest growth on an account – and of course, all the institutions are vying for your business as a saver at the moment. This gives you a little more weight if you’re bringing new business to a bank…and even more weight can be added if you’re introduced by a financial adviser sometimes.

Some expatriate advisers and their advisories have excellent working relationships with a broad range of institutions – so much so that the latter offer special introductory bonuses to new clients brought along by the advisers. You need to make sure that any accounts that are suggested to you are exactly right for your circumstances of course, and an adviser will work with you to ensure that your money is housed as appropriately for your circumstances as possible. I.e., where a lump sum is required on instant access deposit they will find the right account for you, and where other money and assets can be put away for the longer term, they will look for the best options at present.

So, to conclude, as an expatriate and someone who can take real advantage of the wonderful world of offshore, there are instant access, interest paying savings accounts available to you – and whilst the rates of interest available aren’t exactly pretty, they are better than you can get onshore and they are improving!