Barclays Set To Close Doors On Expat Savers

Finding savings deals is getting tougher for expats as yet another offshore big bank readies to close.

Recently, several well-known British banks and building societies have left the offshore savings market, including the Co-Op, Britannia International and Bank of Ireland.

Now Barclays Bank has joined their ranks in the wake of a 25% plunge in profits for the first quarter of this year while revenues fell back 11% to £5 billion.

Chief executive Jes Staley announced pre-tax profits slumped to £793 million compared to £1.1 billion compared to a year ago.

“We’re working hard to restructure the business and feel we have done as well as out rivals and have protected out market share,” he said.

Best offshore savings deal

Barclays now comprises retail and investment divisions.

Peripheral businesses like Barclays Gibraltar are either closing or up for sale.

Barclays expects to sell or close all non-core businesses by March 2017.

Compared to some US banks, Barclays was a star performer. Goldman Sachs, for instance, saw profits drop 56% in the first quarter. JP Morgan, Morgan Stanley and the Bank of America also returned poor results.

Offshore saving offers little solace to expat savers with a limited number of banks offering poor rates for fixed term money on deposit.

Among the current best deals is 1.6% fixed with The Nationwide over three years for a minimum £5,000 deposit.

Although inflation is low, so are the Bank of England’s official interest rates and they are not expected to move far any time soon.

Paltry rates and returns

So, this is likely to be the best saving rate on offer for a while.

But The Nationwide is paying a paltry £800 on £50,000 tied in for three years on this account.

This works out as a £66 a month return – and do not forget this is interest paid gross, so income tax may be due, depending on where the expat saver lives.

The Nationwide also offers the best no notice account – 1.05% for a minimum £25,000 on deposit. The start mark of £5,000 paid in only pays 0.75%.

Standard Bank heads the list of notice accounts with a rate of 1.4% on a minimum deposit of £10,000 with 196 days’ notice – which does not sound as good when converted into six months.