Offshore Savings Fixed Term Deposit Accounts

An ‘offshore’ savings account is essentially a type of account held with a bank outside of the customer’s country of residence. These accounts can be highly useful in many circumstances, as they can potentially help customers reduce the amount of money that would normally be spent on their taxes.

 

By using this type of account, the customer will generally have agreed to store their money for a set period. During this time, the money in their account may be inaccessible, but will continue to earn interest for the duration of the agreement.

 

If the account is also a ‘fixed term’ one, the money may continue to gather interest at a predetermined rate for the duration of the agreement.

 

An offshore savings account with a fixed term deposit may be particularly useful for customers who wish to earn interest on a long term basis. When searching for a provider, it is always important to conduct research using offshore savings account comparisons in order to find the best possible offer.

 

For more information, please see our table below for comparisons on the offshore savings account deals that are available:

Compare Offshore Fixed Rate Bonds
ProviderAccountGross Rate AERTermCurrencyMore Info
1.10%1 YearSterling (£)More Info >
  • Minimum deposit - £10,000
  • Sterling Deposits Only
  • 5 Year Term Bond Available
  • Bond designed to be held for full term
  • Charge for early withdrawal
0.75%1 YearDollar ($)More Info >
  • Minimum deposit - £10,000
  • Dollar, Sterling and Euro Deposits Available
  • Bond designed to be held for full term
  • Charge for early withdrawal
0.30%1 YearEuro (€)More Info >
  • Minimum deposit - €10,000
  • Euro, Sterling and Dollar Deposits Available
  • Bond designed to be held for full term
  • Charge for early withdrawal

The tax on offshore savings accounts is handled slightly differently compared to many local accounts. Interest is not paid on a ‘net’ basis for offshore accounts, instead this interest is credited as gross. The tax on this interest is deducted after the customer has been paid their interest, instead of before, as is the case with most standard banks.

 

This can allow customers to save a significant amount of money, tax may also deferred and collected at a later period, allowing customers to save even more in some circumstances. In order for customers to receive the best possible return, it is advisable to shop around for the most competitive offshore savings account deals available.

Instant Access Savings Accounts Deals
ProviderAccountInterest Rate (AER)TermApply
1.00%Instant AccessMore Info >
MARKET LEADING: Earn 1.00% 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.
0.75%Easy AccessMore Info >
0.75% gross/AER on balances from £1,000 to £1 million. Guaranteed to be at least 0.50% above Base Rate** until 31st December 2017. Unlimited withdrawals without restriction or loss of interest.
5.00%Current Account
Instant Access
More Info >
5.00% interest for 12 months on balances up to £2,500 for the first year. You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else). 12 month fee-free arranged overdraft available. No monthly fee. Must be aged 18 or older.

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

1.80%

per annum

£1,000Apply Now >
Earn 1.80% 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.

1.35%

per annum

£1,000Apply Now >
Earn 1.35% gross/AER fixed for 3 years. Save £1,000 - £250,000. No withdrawals during the term. Individual or joint accounts available
Growth Structured Deposits
ProviderPlan NameMaximum Potential Return*TermMore Info
Kick Out Deposit Plan

3%

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 3% 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