Saving with offshore accounts

Offshore Savings Accounts are available for savers who want access to their funds but also may want to save over the short term ie; a couple of months to a couple of years.

Offshore Bond Accounts usually require a minimum deposit of around £10,000, but shop around as the minimum requirement does vary. This is then invested for periods of time of 2 years or more. The longer you are able to leave the money in the account the more it will grow.

Although withdrawals are not readily available it is possible to draw up to 5% per year of the initial deposited amount without incurring any penalties or loosing the fund’s tax free status.

These accounts are commonly used for people who are considering retirement abroad as the funds could potentially remain tax free. Otherwise tax is payable once the funds are withdrawn and enters the UK.

Offshore savings accounts and offshore bonds provide a good long term investment solution. As the accounts are subject to little or no tax, the account holder can watch their investment grow by receiving interest, which is often at a fixed rate, without having any tax eat into it. Therefore allowing the investment to grow quicker than it would if it had have been invested into an onshore savings account.

Offshore saving accounts and bond accounts gain tax free interest on the lump sum which is sat in the account and benefits from what is known as ‘gross roll up’. Meaning the interest paid on the lump sum then starts to accumulate interest, without being subject to income tax.

Download the Offshore Savings PDF Guide here - see our other free PDF guides here

Guide Contents

What are offshore accounts?
The different types of offshore accounts
Day to day banking with offshore accounts
Saving with offshore accounts
Shopping around for an offshore account
Frequently asked questions about offshore accounts

main menu << previous page  next page >>