Abbey Offshore Savings Accounts
Abbey is owned by the Spanish lender, Santander. Santander manages their offshore savings accounts through Abbey International, which is based in the Channel Islands, Jersey. In opening an Abbey offshore savings account, you may be able to take advantage of the untaxed interest payments. After a period of time, you may have to pay income tax to HMRC, but the delay may grant you enough time to earn a little more interest.
If you are one of the following people, you may wish to consider opening an offshore savings account with Abbey International (Santander):
- You live or work abroad
- You spend a lot of time abroad
- You are a foreign national living in the UK
- You are a UK resident who has an interest in offshore banking
In order to ensure that Abbey is the right financial provider for you, you should consider the offers currently available on the market thoroughly before committing to any given provider or account. Take a look at our comparison tables to compare the best offshore savings account deals:
|Provider||Account||Gross Rate AER||Term||Currency||More Info|
|Lloyds Bank International Bonus Saver - Sterling||Up to 0.90%||Instant Access||Sterling (£)||More Info >|
|Lloyds Bank International Bonus Saver - Dollar||Up to 0.80%||Instant Access||Dollar ($)||More Info >|
|Lloyds Bank International Bonus Saver - Euro||Up to 0.50%||Instant Access||Euro (€)||More Info >|
There are numerous potential advantages and disadvantages in opening an offshore savings account with Abbey (now Santander Private banking) and some of these are detailed below.
Advantages of offshore saving accounts:
- You may be able to earn more interest because interest is paid on ‘gross’ balances, as opposed to UK savings accounts where the interest you receive has been reduced by income tax.
- There is a period of delay in which your savings can accumulate more interest before you have to pay income tax
- You may gain the opportunity to save and earn interest in foreign currencies
- There may be interest deferral options available in certain types of accounts.
Disadvantages of offshore savings accounts:
- There may be expensive maintenance fees and the Provider may charge for withdrawals
- A large deposit may be required to set up the offshore savings account
- The UK Financial Services Compensation Scheme may not protect your finances in offshore savings accounts
- You should be aware that you may be taxed twice, depending on the location of your offshore account.
Whether you decide to go with Abbey (Santander Private Banking) for an offshore savings account or not, you are advised to look at the comparison tables on this page first and judge this deal against some of the others available at the moment.