Like their onshore contemporaries, today’s expats are struggling to find an offshore bank account paying a decent rate for their savings. Although it doesn’t seem that anything is going to get better in the near future, expats should still shop around for the best deal.
Sylvia Waycot finance expert at Moneyfacts said, “All forms of savings rates, from easy-access to notice accounts, are plummeting. This month, however, saw the savers’ darling, fixed-term bonds, drop to an all-time low.
“You will need to be particularly on your guard if you have an existing bond that is due to mature because if you do nothing you may find it is reinvested for the same term in the latest bond equivalent – which, at these rates, may not be what you want’.
“Funding for Lending has an 18 month window where providers can borrow government money at vastly discounted rates and four years thereafter to lend the money out. For all that time the needs of the poor saver are going to be on the back burner.”
In the market at the moment expat savers can get 2.5% at Alliance & Leicester International fixed for 2 years with a minimum deposit of £5000. Nationwide International are offering 2.1% on a variable rate deal however.