MyFinances.co.uk
News feeds Free newsletter

All the latest personal finance news - helping you make the most of your money

Savings & Investments glossary

Offshore savings accounts

Offshore savings accounts are savings accounts where money or assets are placed in a country other than the one in which you live.

This can be done to take advantage of beneficial tax laws in other countries, or to secure higher interest rates than are easily available at home.

Another advantage is that money can easily be deposited in several currencies - including sterling, euros, and dollars.

However, rarely are these accounts completely tax free, and Britons are required to tell local tax authorities at home they have money overseas. But there is still an advantage as interest is allowed to build up for a full 12 months before it is taxed - rather than being taxed at source.

While Cayman Islands offshore accounts might make the headlines, more often accounts are run from places like the Channel Islands, the Isle of Man and Ireland.

There is also a risk attached as offshore savings accounts are not all covered by the UK Financial Services Compensation Scheme.


Related articles 


Disclaimer:
myfinances.co.uk is not authorised to give advice under the Financial Services and Markets Act 2000.

Terms:
By using this site, you are deemed to have accepted our terms of use.

About Us | Advertise | Contact Us | Privacy
© 2004 - 2008 www.myfinances.co.uk

myfinances poll 

myfinances.co.uk is running a poll to get your thoughts on stamp duty and its possible suspension to boost the property market.