Offshore Savings Deposit Accounts

A popular type of offshore savings account is a deposit account.  Such accounts tend to work in the following way:

 

  • You would open an account based in a country different to the one in which you reside
  • You would then place a deposit into this account, which may be subject to a minimum requirement
  • If your account is a notice deposit account, you will be permitted to make withdrawals after giving a certain amount of prior notice
  • Certain offshore deposit savings accounts will not allow you to make withdrawals prior to maturity
  • Interest could be paid to you monthly, annually or upon maturity, depending on the account.

 

If you are interested in opening an offshore savings deposit account, it would normally be best to compare offshore savings account deals from several different providers to ensure that you will be getting the most benefit from an account.

 

See our offshore savings deposit account comparison tables below for information on a range of some of the best accounts currently on the market:

ProviderAccountGross Rate AERTermCurrencyMore Info
   More Info >

* GROSS RATE – The contractual rate of interest payable before deduction of income tax at the rate specified by law.

** AER RATE – AER stands for Annual Equivalent Rate and is the notional rate which illustrates the gross rate as if it was paid and compounded once each year. As every advertisement for a savings product will contain an AER you can compare more easily what return you can expect from your savings over time.

Offshore savings deposit accounts could be of most interest to the following people:

  • People that are paid in foreign currencies
  • Expatriates
  • UK residents who are interested in investing their savings abroad.

While an offshore savings deposit account could suit a number of people, it is also important to remember that they could be inappropriate for others.  Therefore, it is advised that you look at your own situation carefully before deciding to open one.

 

Offshore savings deposit accounts could have the following pros and cons:


 Potential Pros

  • Interest paid on ‘gross’ instead of ‘net’ amount in the account
  • Save in currencies other than Sterling
  • Potentially delays the paying of income tax, so you could save more.

Potential Cons

  • There could be expensive running costs
  • Your savings would not be covered by the UK Financial Services Compensation Scheme
  • You may need to have a large deposit.
Instant Access Savings Accounts Deals
ProviderAccountInterest Rate (AER)TermApply
1.30%Instant AccessMore Info >
MARKET LEADING. Earn 1.30% gross/AER. Instant Access. No notice periods. Unlimited payments and withdrawals. Pay in from £100. RCI Bank are protected up to a total of €100,000 by the FGDR, the French deposit protection scheme. Manage account online.
1.22%Instant AccessMore Info >
Earn 1.22% gross/AER variable. Open with £1. Unlimited free withdrawals. Interest paid monthly or annually. Manage your account online. Rate includes a 0.97% gross fixed rate bonus for 12 months from account opening. After 12 months the rate will revert to underlying rate, currently 0.25% gross/AER variable. FSCS protected

1.17%

£1More Info >
Earn 1.17% AER variable interest. Interest can be paid monthly or annually. Open an account singly or jointly. Minimum deposit £1. Unlimited deposits and withdrawals permitted. FSCS Protected

Gross is the interest you will receive before tax is deducted.

AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

Latest Fixed Rate Bond Deals
ProviderAccountInterest Rate (AER)TermApply

2.25%

per annum

£5,000Apply Now >
Earn 2.25% fixed interest - 3 year term - Minimum deposit £5,000 - No withdrawals permitted. FSCS Protected

2.05%

per annum

£5,000Apply Now >
Earn 2.05% fixed interest - 2 year term - Minimum deposit £5,000 - No withdrawals permitted. FSCS Protected

2.40%

per annum

£1,000Apply Now >
Earn 2.40% gross/AER fixed for 4 years. Save £1,000 - £250,000. No withdrawals during the term. Individual or joint accounts available. Annual or monthly interest. FSCS Protected
Growth Structured Deposits
ProviderPlan NameMaximum Potential Return*TermMore Info
Kick Out Deposit Plan

4%

per annum

Up to
6 years
More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 4% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.
* Maximum Growth Yields are not guaranteed and subject to certain conditions