Offshore Savings Guide

Offshore Savings Guide

Compare Saving Accounts

Top UK Instant Access Account

Earn 0.50% Gross AER

  • Provider – RCI Bank
  • Account – Freedom Saver Instant Access Account
  • Deposit from £500
  • Interest paid monthly or annually
  • Unlimited payments and withdrawals
  • Which? Recommended Savings Provider
  • FSCS Protected
RCI Bank Freedom Saver Account»
Reviewers recommend Fair Investment Company
Account
Aldermore Double Account
Interest Rate
0.60%
Gross/AER
Term
Instant Access
Minimum Deposit
£1,000
Account
Investec Online Flexi Saver
Interest Rate
0.55%
Gross/AER
Term
Instant Access
Minimum Deposit
£5,000
Account
RCI Bank Freedom Savings Account
Interest Rate
0.50%
Gross/AER
Term
Instant Access
Minimum Deposit
£100
Account
Aldermore Easy Access Account
Interest Rate
0.50%
Gross/AER
Term
Instant Access
Minimum Deposit
£1,000
Account
Plum Easy Access Account
Interest Rate
0.55%
Gross/AER
Term
1 Day Notice
Minimum Deposit
£0
Account
RCI Bank 95 Day Notice Account
Interest Rate
0.55%
Gross/AER
Term
95 Day Notice
Minimum Deposit
£1,000
Account
Aldermore 120 Day Notice Account
Interest Rate
0.70%
Gross/AER
Term
120 Day Notice
Minimum Deposit
£1,000
Account
Access Bank 1 Year Fixed Rate Bond
Interest Rate
0.75%
Gross/AER
Term
1 Year
Minimum Deposit
£5,000
Account
Access Bank 2 Year Fixed Rate Bond
Interest Rate
0.90%
Gross/AER
Term
2 Years
Minimum Deposit
£5,000
Account
Access Bank 3 Year Fixed Rate Bond
Interest Rate
1.00%
Gross/AER
Term
3 Years
Minimum Deposit
£5,000
Account
RCI Bank 4 Year Fixed Rate Bond
Interest Rate
0.95%
Gross/AER
Term
4 Years
Minimum Deposit
£1,000
Account
RCI Bank 5 Year Fixed Rate Bond
Interest Rate
1.00%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Plan Name

Investec FTSE 100 6 Year Deposit Plan

Maximum Potential Return
18.5%
at end of term
Term
6 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 Kick Out Deposit Plan

Maximum Potential Return
2.25%
per annum
Term
Up to 6 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 3 Year Defensive Deposit Plan

Maximum Potential Return
4.05%
at end of term
Term
3 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Account
Aldermore Double Account
Interest Rate
0.60%
Gross/AER
Term
Instant Access
Minimum Deposit
£1,000
Account
Investec Online Flexi Saver
Interest Rate
0.55%
Gross/AER
Term
Instant Access
Minimum Deposit
£5,000
Account
RCI Bank Freedom Savings Account
Interest Rate
0.50%
Gross/AER
Term
Instant Access
Minimum Deposit
£100
Account
Plum Easy Access Account
Interest Rate
0.55%
Gross/AER
Term
1 Day Notice
Minimum Deposit
£0
Account
Aldermore Easy Access Account
Interest Rate
0.50%
Gross/AER
Term
Instant Access
Minimum Deposit
£1,000
Account
RCI Bank 95 Day Notice Account
Interest Rate
0.55%
Gross/AER
Term
95 Day Notice
Minimum Deposit
£1,000
Account
Aldermore 120 Day Notice Account
Interest Rate
0.70%
Gross/AER
Term
120 Day Notice
Minimum Deposit
£1,000
Account
Access Bank 1 Year Fixed Rate Bond
Interest Rate
0.75%
Gross/AER
Term
1 Year
Minimum Deposit
£5,000
Account
Access Bank 2 Year Fixed Rate Bond
Interest Rate
0.90%
Gross/AER
Term
2 Years
Minimum Deposit
£5,000
Account
Access Bank 3 Year Fixed Rate Bond
Interest Rate
1.00%
Gross/AER
Term
3 Years
Minimum Deposit
£5,000
Account
RCI Bank 4 Year Fixed Rate Bond
Interest Rate
0.95%
Gross/AER
Term
4 Years
Minimum Deposit
£1,000
Account
RCI Bank 5 Year Fixed Rate Bond
Interest Rate
1.00%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000

There are no tables for this criteria

Account
Nationwide FlexDirect Current Account
Interest Rate
2.00%
AER fixed on balanced up to £1,500
Funding Required
£1,000 per month
Overdraft rate
0% for 12 months
Account
Santander 1|2|3 Current Account
Interest Rate
0.60%
AER fixed on balances up to £20,000
Funding Required
£500 per month
Minimum Arranged Overdraft
On Application
Account Fee
£5 pm
Account
Starling Bank Mobile App Bank Account
Details
A 100% mobile current account built to give you more control over your money. Voted Best British Bank 2020*
Spend & Transfer Money Abroad
Account fee
FREE

*Best British Bank and Best Current Account in 2019 and 2020 at the British Bank Awards. Awarded 5 stars by Defaqto too

Account
Bunq Premium Mobile App Bank Account
Details
A revolutionary mobile bank, built from a clean slate, dedicated to your wants and needs. Get the freedom to spend, save, move and invest your money whichever way you like
Spend & Transfer Money Abroad
Account fee (EUR)
7.99 EUR per month
Account
Nationwide FlexPlus Current Account
Special Features
Free Breakdown insurance, worldwide travel insurance, family mobile insurance plus commission-free cash withdrawals and card payments abroad
Arranged Overdraft
Account Fee
£13 per month
Account
Monese Multi-Currency Mobile App Bank Account
Details
Multi-currency banking app that provides you with fast and free current accounts in 31 countries
Spend & Transfer Money Abroad for Free
Account fee
£0 to £14.95 per month
Account
Nationwide FlexAccount Current Account
Funding Required
No minimum
Arranged Overdraft rate
39.9%
Account fee
No fee
Plan Name

Investec FTSE 100 6 Year Deposit Plan

Maximum Potential Return
18.5%
at end of term
Term
6 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 Kick Out Deposit Plan

Maximum Potential Return
2.25%
per annum
Term
Up to 6 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 6 Year Defensive Deposit Plan

Fixed Return
11.7%
if FTSE higher, 4.2% if lower
Term
6 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 3 Year Deposit Plan

Maximum Potential Return
5.4%
at end of term
Term
3 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 3 Year Defensive Deposit Plan

Maximum Potential Return
4.05%
at end of term
Term
3 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 Defensive Kick Out Deposit Plan

Maximum Potential Return
1.75%
per annum
Term
Up to 6 years
ISA Option

Deposit Taker: Investec Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Account
Starling Bank Business Current Account
Details
Zero monthly fees with a fast and straightforward setup, the mobile bank account built for contractors freelancers and small businesses
Debit Card
Monthly Account Fee
FREE

Add the Business Toolkit to your free account and automate bookkeeping alongside your banking to save precious time on financial admin – Get the first month free (£7 per month after that)

Account
Tide Business Current Account
Details
Powerful and simple business account - built to make your life easier. For companies of all shapes and sizes. Trusted by 130,000+ UK businesses
Debit Card
Monthly Account Fee
FREE

Get £50! Open a business current account with Tide & Fair Investment*

*£50 and a year of free transfers when you open a business account. T&Cs apply. Use the code: FAIRINVESTMENT

Account
Neat Business Current Account
Details
The new way entrepreneurs do business around the world - send & receive money globally
Multiple Currency Payments
Account Fee
Free to Open, other fees apply
Account
Cashplus Business Account
Details
The Current Account of Today. No credit checks to apply. Instant approval once we verify your details. Real time banking services at a click or tap
Debit Card
Monthly Account Fee
No Monthly Fee
Account
Aldermore Bank 1 Year Business Fixed Rate Bond
Interest Rate
0.75%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Type of Card
FairFX Pre-Paid Business MasterCard
No Credit Check to Open
Details

Issue FairFX MasterCards to staff, and use the online platform to instantly load cards, monitor spending, and upload transaction data in accounting software at any time

Available to
Any registered business in the EU including Sole traders, SMEs, Charities, Trusts, PLCs, & Multinationals

FairFX Pre-Paid Business MasterCard

Account
Aldermore Bank 6 Month Business Fixed Rate Bond
Interest Rate
0.65%
Gross/AER
Term
6 Months
Minimum Deposit
£1,000
Account
Investec Online Business Savings Account – 32 Day Notice
Interest Rate
0.55%
Gross/AER
Term
32 Day Notice
Minimum Deposit
£40,000

Offshore Savings Guide

Broadly speaking, an offshore savings account is a savings account that is run by a bank based in a country other than that in which the saver is resident.

Who would best suit an offshore savings account?

There is a wide range of people that may find an offshore savings account particularly beneficial; among these could be the following:

  • Expatriates
  • Those that are paid their salary in a foreign currency
    UK residents who are interested in the potential benefits of investing their savings abroad.

Who offers offshore savings accounts?

It is widely the case that many UK banks and building societies have an offshore arm that could allow you to open an offshore savings account.

As with all other types of bank account, offshore savings accounts from different providers can vary greatly in terms of interest rates and features offered. Therefore, it is strongly advised that you carefully compare several different offshore savings accounts with your own circumstances in mind to ensure that you get the best possible deal.

What are the different types of offshore savings accounts?

There are a range of different types of offshore savings accounts on the market, including the following:

  • Fixed term deposit – This would involve you depositing a certain amount into your offshore savings account for a certain period. With such accounts, withdrawals are not generally permitted. It is widely the case that such accounts tend to offer favourable interest rates.
  • Euro accounts or US Dollar accounts – These types of accounts would allow you to make transactions in the foreign currency of your account. Such accounts tend to be most beneficial for those who get paid in the foreign currency of the account, or for those planning to move to a country in which this is the currency.
  • Accounts with a deferred interest option – An offshore savings account with a deferred interest option would give you the opportunity to choose when you would receive interest on your savings, which could be helpful if you would like to plan around your tax liabilities. You may be able to choose to receive interest upon closing your account, or to choose to defer all or part of the interest payments to a time convenient to you.
  • Expatriate accounts- These offshore savings accounts are specifically designed to meet the needs of those who live in a country other than the one in which you are a citizen.

Tax liabilities

If you open an offshore savings account, you will most likely be required to pay income tax on any interest earned with this savings account. If you are caught using an offshore savings account as a vehicle for tax evasion, you will be required to pay HM Revenue & Customs the amount of tax you owe with interest as well as a fine.

However, there tends to be a delay between the earning of interest on an offshore savings account and the requirement to pay tax on it. In some cases, the delay could be up to 20 months. This means that you may have the opportunity to earn slightly more interest on your savings during this period.

Advantages and disadvantages of an offshore savings account

If you are thinking of opening an offshore savings account, you would be best advised to thoroughly consider the potential advantages and disadvantages of this method of saving, particularly with regards to your personal circumstances. For many people, an offshore savings account could present the following advantages and disadvantages:

Advantages

  • The potential to earn more interest, as it is paid on ‘gross’ balances unlike UK savings accounts which pay interest on ‘net’ balances
  • The delay in paying income tax could allow you to earn slightly more interest
  • Gives you the opportunity to save in foreign currencies
  • Accounts with interest deferral options offer the convenience of being able to choose when you would receive interest.

Disadvantages

  • Many offshore savings accounts have expensive running costs and could charge for withdrawals
  • You may be required to make a large deposit
  • Your deposit would not be protected by the UK Financial Services Compensation Scheme, but most countries tend to offer something similar
  • You may be taxed twice, though with over 100 taxation agreements existing between the UK and other countries, this is highly unlikely.

Santander 123 Current Account

Earn 0.60% AER Fixed Interest for up to £20,000

  • 0.60% AER (variable) payable on your entire balance up to £20,000
  • Up to 3% cashback on household bills
  • Must pay a minimum of £500 into the account each month
  • Monthly fee of £5
  • Mobile app
Our view: With this current account you get 0.60% AER on the first £20,000 of your cash. To qualify you will need to pay in £500 pm (Equates to a £6,000 pa salary) . Additionally you can gain up to 3% cashback on household bills – 1% on water, council tax bills and Santander mortgage payments, 2% on gas and electricity bills, and 3% on mobile phone, home phone, broadband and paid-for TV packages.  The account has full savings FSCS protection. Santander 123 Account »
Investec FTSE 100 6 Year Deposit Plan

19.5% - Maximum Potential Return

  • 6 Year Term
  • Capital Protected
  • Alternative To Medium/Long Term Fixed Rate Bonds
More Details »

When trying to save money for the future, there are several options open to cash savers. Options include instant access savings accounts, easy access savings accounts, notice savings accounts, fixed rate bonds and structured deposit plans.

With interest rates at the time of writing at all time lows many savers are looking for a range of best saving plans. For savers who are prepared to tie up capital for a year or more typically higher rates of interest are available from savings providers.

A fixed rate bond is a way of gaining a fixed rate of higher interest on your savings for a fixed period of time, typically between one and five years. Generally speaking the longer your savings can be locked away, the higher the interest rate you can get on your money. Some providers offer fixed rate bonds within a Cash ISA so you benefit from tax free interest returns.

Providers normally have a minimum subscription age of 18 but some providers offer options to younger savers.

Normally there is a minimum commitment for depositing money into a fixed rate bond – usually around £1,000, but this can be more. This makes bonds unsuitable for those who wish to top up a savings account in small increments, as this is not usually possible beyond the first lump sum, therefore could look into alternative savings and investments plans.

Having a fixed term means that bonds have a maturity date at which time you will be contacted by your savings provider and provided with options on how you wish your money to be returned to you – you may be given options of putting the money into a new account in which case you should always shop around before accepting a savings deal offered by an existing provider as the rate of interest may or may not be competitive.

Product providers do not normally allow you to access your money during the term and if they do there are normally conditions which may involve a loss of interest so ensure you read the small print before you sign up. Some fixed interest providers will allow one withdrawal a year without penalties.

Interest paid on your savings is treated as income and you may have to pay tax on it depending on your circumstances. If you don’t pay tax you can receive interest gross if you complete HMRC tax form R85. Some accounts will pay interest gross and it is up to you to declare any tax owed to the Inland Revenue.

Fixed rate bonds are cash deposit based and you will get back your original deposit plus any interest owed unless the bank or building society gets into serious financial difficulty. In the unlikely event that this happens the Financial Services Compensation Scheme would pay compensation of up to £85,000 per account holder per authorised institution.

The length of time that savers choose to deposit their money depends on personal financial time frames and other budget and savings considerations. If you need rapid access to your cash, bonds are possibly not the best savings option – it might be preferable to look at an alternative savings options or just an instant access savings accounts.

Minimum deposits can vary from £500 to over £2000. Make sure that you are happy to part with that amount of money for a longer period of time! It is worthwhile having a five-year plan of projected expenses – such as mortgages, car purchases, or planning for a family or retirement – to ensure that you will not need access to your fixed rate bonds account.

Withdrawals are either not permitted or restrictions will apply. Read the provider terms and conditions so that you know what you are getting into. Some providers for example will allow one withdrawal during the term without penalties.

The payment of interest can also vary- some offer monthly interest, others quarterly or annually, and some only pay at the end of the agreed term. Choose a product that fits in with your requirements for the best rates of high interest.

Tax is payable on interest accrued unless you are a non tax payer in which case you can receive interest gross if you complete HMRC tax form R85. Alternatively it is often possible to take a Cash ISA fixed rate bond (current cash ISA allowance for 2018/19 is £20,000 per individual) from which interest can be taken tax free.

If you have cash ISAs from previous tax years you may be able to transfer to a new Cash ISA provider offering a fixed rate bond cash ISA deal.

Please note that this information is based on current law and practice which may change at any time.

1. Consider all options – from instant access to fixed rate bonds to instant access options – All have advantages and disadvantages when trying to build a nest egg for the future.

2. Check the market – shop around to find the right savings plan for you. Interest rates are changing all the time and deals come and go on a regular basis.

3. Make sure you find a product that works for you –  The choice of bond is dependent on the amount of money you intend to deposit, the fixed rate, and the length of the fixed rate period. Whether you want the account to be operated on an online account basis, postal basis or telephone basis. These should all be taken into consideration before making your choice. Read the savings provider terms and conditions carefully.

4. Read the fine print – determine when the provider is likely to let you access your money, how much notice is required, and if there are any penalties for requesting access before the bond matures.

5. Some deals require you to have the interest paid into a current account – check the small print.

6. Check the small print on how interest is paid –  If monthly or annually this will be need to be declared if you submit a tax return. If interest is paid on maturity this may be useful for tax planning purposes.

7. Many deals require you to have internet access –  Some are offered on a postal or branch basis – check the small print.

8. Check that your money is covered by the Financial Services Compensation Scheme – they will guarantee £75,000 of savings against institutional failure. Most UK banks should have this cover, but Irish banks that do not have a UK arm may not be covered by the FSCS.

9. Check what happens when your savings product matures – Providers will write to you when your account matures; if you do not respond the provider will often put your savings into a low or no interest holding account until you provide instructions on what you want to do with the money. It is therefore important to diarise the maturity of your bond and have in mind what you want to do with the money.

10. What is the tax treatment if you are a non taxpayer – If you are not a tax payer many providers will pay interest gross on submission of the relevant HMRC tax form.