Offshore Savings Accounts with Monthly Interest

Although the interest earned on your offshore savings may be subject to income tax under UK law, there is usually a delay period between you receiving the gross amount of interest and the date when you have to pay income tax that allows your savings to earn more interest than they would in a UK savings account.

Take a look at the offshore savings account deals available from the providers listed in the tables on this page for a good starting point:

As well as considering the benefits in opening an offshore savings account in the Isle of Man or the Channel Islands, it is recommended that you consider the overall advantages and disadvantages in opening an offshore savings account.

Some possible advantages:

• Save your money in a foreign currency with a higher FX value. The delay in paying income tax on the interest accumulated on your savings means that there is more time to make even more money from the high interest rates
• The interest is paid in its ‘gross’ state, which means that you can make more interest because your savings are greater than they would be in a UK savings account
• The interest made on your savings can be used to supplement your income and help you keep a good standard of living.

Some possible disadvantages:

• Most accounts require minimum deposits and you may be charged withdrawal fees
• Interest rates may be no better than those available in the UK
• The deposit protection scheme may differ abroad
• You do run the risk of being taxed twice by HMRC, depending on the location of your offshore savings account.