It is necessary to consider what advantages and disadvantages there might be for a UK resident with an offshore savings account before opening one.
- There might be a delay in paying income tax to HMRC, allowing you to earn more gross interest on your savings
- Convert your savings into foreign currency to earn more money on your savings
- You may be able to use the interest you earn on your savings to supplement your income to maintain a good standard of living
- There are interest deferral options
- You may choose between a variety of accounts (Euro accounts, USD accounts, deferred interest accounts, expatriate accounts)
- The interest is paid in its ‘gross’ amount rather than ‘net’
There might be a delay in paying income tax to HMRC, allowing you to earn more gross interest on your savings
- Interest rates may not surpass those in the UK
- Deposit protection scheme may differ from country to country
- You could be taxed twice by HMRC if you do not maintain accurate records
- Most accounts require substantial deposits and you may be charged withdrawal fees
Interest rates may not surpass those in the UK
Before committing to any given offshore savings account you should compare a range of financial providers and accounts, as each provider differs in their terms and conditions and it is worth finding the offshore savings account deal that is best for you.