Most offshore fixed savings rates remain unchanged – but the Nationwide is offering a new three-year bond.
At 1.80% for a minimum deposit of £5,000, the rate is conservative and lacks excitement for expats who can pick up better rates over the same term elsewhere for depositing the same cash.
Conister Bank is offering 2.50% over three years for £5,000 on deposit, while Skipton International has a 2.25% three-year fix, but demands a £20,000 minimum deposit.
Don’t forget expat savers do not get to keep all the interest earned on their cash.
With £10,000 in Conister Bank for five years at 3.0% fixed, the return is just £300 before tax – and typical tax of 20% (£60) will be grabbed by the tax authorities in most countries.
Inflation hits spending power
Inflation also needs considering.
How this hits spending power depends on where you live.
For instance, the rising cost of living in the UK is 1.9%, but in Greece, it’s deflation of 1.1% and across the Eurozone the average is just 0.5%.
For a British saver with money held offshore, the return on that deal is around £234 after tax and inflation – in Spain or France, it’s around £238. In Greece, deflation makes the figure £243.
| Offshore Fixed Term Savings Accounts - by interest rate | |||
|---|---|---|---|
| Provider | AER | Term | Deposit |
| Conister Bank | 3.00% | 5 Year Bond | £5,000 |
| Skipton International | 2.75% | 5 year Bond | £10,000 |
| Conister Bank | 2.50% | 3 Year Bond | £5,000 |
| Skipton International | 2.25% | 3 Year Bond | £10,000 |
| Permanent Bank | 2.11% | 5 Year Bond | £20,000 |
| Permanent Bank | 2.06% | 3 Year Bond | £20,000 |
| Santander | 2.05% | 3 Year Bond | £500 |
| Permanent Bank | 2.03% | 2 Year Bond | £20,000 |
| Permanent Bank | 1.99% | 18 Month Bond | £20,000 |
| Permanent Bank | 1.84% | 15 Month Bond | £20,000 |
| Nationwide | 1.80% | 3 Year Bond | £5,000 |
| Conister Bank | 1.75% | 1 Year Bond | £5,000 |
| Leeds Building Society | 1.50% | August 31, 2015 | £1,000 |
| Newcastle Building Society | 1.50% | January 22, 2016 | £500 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Santander | 1.50% | 2 Year Bond | £500 |
| Nationwide | 1.45% | 1 Year Bond | £5,000 |
| Newcastle Building Society | 1.40% | January 22, 2015 | £500 |
| Investec Bank Offshore | 1.30% | 1 Year Bond | £50,000 |
| Lloyds Bank | 1.10% | 1 Year Bond | £10,000 |
| Offshore Fixed Term Savings Accounts - by deposit amount | |||
| Provider | AER | Term | Deposit |
| Santander | 2.05% | 3 Year Bond | £500 |
| Newcastle Building Society | 1.50% | January 22, 2016 | £500 |
| Santander | 1.50% | 2 Year Bond | £500 |
| Newcastle Building Society | 1.40% | January 22, 2015 | £500 |
| Leeds Building Society | 1.50% | August 31, 2015 | £1,000 |
| Conister Bank | 3.00% | 5 Year Bond | £5,000 |
| Conister Bank | 2.50% | 3 Year Bond | £5,000 |
| Nationwide | 1.80% | 3 Year Bond | £5,000 |
| Conister Bank | 1.75% | 1 Year Bond | £5,000 |
| Nationwide | 1.45% | 1 Year Bond | £5,000 |
| Skipton International | 2.75% | 5 year Bond | £10,000 |
| Skipton International | 2.25% | 3 Year Bond | £10,000 |
| Lloyds Bank | 1.10% | 1 Year Bond | £10,000 |
| Permanent Bank | 2.11% | 5 Year Bond | £20,000 |
| Permanent Bank | 2.06% | 3 Year Bond | £20,000 |
| Permanent Bank | 2.03% | 2 Year Bond | £20,000 |
| Permanent Bank | 1.99% | 18 Month Bond | £20,000 |
| Permanent Bank | 1.84% | 15 Month Bond | £20,000 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Investec Bank Offshore | 1.30% | 1 Year Bond | £50,000 |
| This list covers most major providers but is not exhaustive. Account rates and minimum deposits are likely to change or be withdrawn at short notice | |||
Offshore savings providers
Here’s a list of 10 of the leading offshore savings providers with links to their web sites:
- Conister Bank – Private personal and commercial banking from the Isle of Man
- Investec – Offers international banking services, including savings and investments from the Channel Islands
- Leeds Building Society – Gibraltar branch of the UK based building society serving expats
- Lloyds Bank International – Channel Islands and Isle of Man personal banking for expats
- NatWest Bank – Offshore saving rates from branches in Gibraltar, the Isle of Man and Channel Islands
- Nationwide Building Society – The international service of the popular UK building society
- Newcastle Building Society – Expat saving and banking services from Gibraltar
- Permanent Bank – Isle of Man branch of an Irish-based bank
- Santander – Isle of Man branch of this international bank with a UK high street presence
- Skipton International – Channel Islands branch for expats of the UK building society
Other offshore financial institutions are available and will be added to the list when they issue new products for expat savers.
