Savings rates for expats have seen some shift in the past week as providers either shaved rates on long-term bonds or introduced new products with slightly improved interest rates.
But the overall result for savers holding deposits in Sterling is not good as markets reacted to Bank of England director Mark Carney’s indication that the official interest rate will probably rise by the end of 2014 and not some time in 2015, as widely expected.
Carney has promised a gradual, soft increase rather than a sudden uplift.
Money markets by rallying around the pound and pushing the value up – so even if expats win on rising rates and falling inflation, they could stand to lose on currency exchange rates against the euro and other major currencies.
Offshore savings for expats – June 13, 2014
| Provider | AER | Term | Deposit |
|---|---|---|---|
| Skipton International | 2.75% | July 31, 2019 | £10,000 |
| Conister Bank | 2.50% | June 13, 2019 | £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 | 2.03% | 20 Month Bond | £20,000 |
| Leeds Building Society | 2.00% | 18 Month Bond | £1,000 |
| Permanent Bank | 1.99% | 15 Month Bond | £20,000 |
| Nationwide | 1.80% | 3 Year Bond | £5,000 |
| Leeds Building Society | 1.75% | 2 Year Bond | £100 |
| Santander | 1.65% | 2 Year Bond | £500 |
| Leeds Building Society | 1.50% | 1 Year Bond | £100 |
| Newcastle Building Society | 1.50% | January 22, 2016 | £500 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Nationwide | 1.45% | 1 Year Bond | £5,000 |
| Newcastle Building Society | 1.40% | January 22, 2015 | £500 |
| Conister Bank | 1.36% | 3 Year Bond | £5,000 |
| Investec Bank Offshore | 1.30% | June 13, 2015 | £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 Account rates and minimum deposits are likely to change or be withdrawn at short notice | |||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.
