Offshore Savings High Interest Accounts

A high interest offshore savings account may allow customers to earn significant interest on their savings, as any money that is earned can be paid into an account as an untaxed amount. There is often a delay before HMRC will expect customers to make their income tax payments, and this delay may provide the opportunity to save significantly more money.

 

To open an offshore savings account with high interest, a minimum deposit of £5,000 - £10,000 may be required. In some high interest accounts, an even higher deposit may be required in order to receive the best possible rate of interest.

 

Before opening a suitable account, customers should conduct thorough market comparison reasearch in order to find the best offshore savings account deals available. If you considering this, you may wish to take a look at our comparison tables for a range of accounts from different financial providers:

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.

For many people, an offshore savings account with high interest can be used to maximize their savings. These accounts are often used by frequent travelers, foreign currency earners and expatriates for example.

 

Depending on the circumstances, these accounts can have several differed advantages and disadvantages, customers should therefore always shop around for different offshore account deals wherever possible. It is therefore important to carefully consider the terms of an account before it is opened.

 

Advantages

  • You can save in multi-currency (Sterling, Euro, Dollar)
  • There is often unlimited access for business people and frequent travelers, which  is useful because of different time zones
  • Different tax rules apply to offshore accounts and interest is paid in gross amount (before income tax reduction) which may allow you to save more overall and maximize savings.
  • There may be a deferral option for your interest payments, allowing you to receive them at a time convenient to you regarding tax.

Disadvantages

  • Financial providers of offshore saving accounts are not covered by the UK Financial Services Compensation Scheme.
  • The initial deposit requirement may be high
  • Offshore savings account maintenance fees may be expensive
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

2.20%

per annum

£1,000Apply Now >
Earn 2.20% 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