The difference is not that big to be honest, if you use your head and shop around, then the difference in returns on your savings here in the UK in comparison to what you would get in Oz is negligable.

The Best in Oz is 7.5 % for one year.

The Best in the UK is 6.86 % for six months. At the moment.

http://www.fsa.gov.uk/tables

West Bromwich Building Society E Bond 12 6.75% Fixed Term 6 months 6.86% At maturity

West Bromwich Building Society E Bond 12 6.55% Fixed Term 6 months 6.86% Monthly

Nottingham Building Society Fixed Rate Savings Account Issue 38 6.69% Fixed Term 7 months 6.80% At maturity

Icesave 6 Month Fixed Rate Savings Account 6.65% Fixed Term 6 months 6.76% At maturity

Icesave 6 Month Fixed Rate Savings Account 6.56% Fixed Term 6 months 6.76% Monthly

Anglo Irish Bank - UK 1 Year Fixed Rate Bond 6.75% Fixed Term 1 year 6.75% At maturity

Loughborough Regular Savers Plus 2 6.75% Variable Ongoing Ongoing 6.75% Annually

Icesave 1 Year Fixed Rate Savings Account 6.70% Fixed Term 1 year 6.70% Annually

Icesave 1 Year Fixed Rate Savings Account 6.50% Fixed Term 1 year 6.70% Monthly

FirstSave 1 Year Fixed Rate Bond 6.65% Fixed Term 1 year 6.65% At maturity

FirstSave 1 Year Fixed Rate Bond 6.46% Fixed Term 1 year 6.65% Monthly

United Trust Bank Ltd 6 Month Fixed Deposit 6.50% Fixed Term 6 months 6.60% At maturity

West Bromwich Building Society Star Easy Access Account 6.55% Variable Ongoing Ongoing 6.55% Annually

West Bromwich Building Society Star Easy Access Account 6.36% Variable Ongoing Ongoing 6.55% Monthly

Heritable Bank 90 Day Notice Account (Issue 6) 6.51% Variable Ongoing Ongoing 6.51% Annually

Bradford & Bingley eBond Issue 23 6.40% Fixed Term 6 months 6.50% At maturity

Bradford & Bingley eBond Issue 23 6.31% Fixed Term 6 months 6.50% Monthly

FirstSave Easy Access Account 6.50% Variable Ongoing Ongoing 6.50% Annually

FirstSave Easy Access Account 6.31% Variable Ongoing Ongoing 6.50% Monthly

Ipswich Building Society 1yr County Bond Issue 2 6.50% Variable Term 1 year 6.50% Annually

Ipswich Building Society 1yr County Bond Issue 2 6.50% Variable Term 1 year 6.50% Monthly

Kaupthing Edge Instant Access Savings Account 6.31% Variable Ongoing Ongoing 6.50% Monthly

Nationwide Building Society Regular Savings 6.50% Variable Ongoing Ongoing 6.50% Annually

Northern Rock Silver Savings Online 6.49% Variable Ongoing Ongoing 6.49% Annually

Northern Rock Silver Savings Online 6.31% Variable Ongoing Ongoing 6.49% Monthly

Investec Bank High 5 6.48% Variable Term 1 year 6.48% Annually

Investec Bank High 5 6.30% Variable Term 1 year 6.48% Monthly

Derbyshire Postal 30 Triple Guarantee 6.45% Variable Ongoing Ongoing 6.45% Annually

Monmouthshire Building Society Saver Plus Account 6.45% Variable Ongoing Ongoing 6.45% Annually

Monmouthshire Building Society Christmas Saver Account 6.45% Variable Ongoing Ongoing 6.45% Annually

ICICI Bank UK Plc HiSAVE Savings Account 6.23% Tracker Ongoing Ongoing 6.41% Monthly

Bradford & Bingley Internet Saver Issue 2 6.40% Variable Ongoing Ongoing 6.40% Annually

Bradford & Bingley Internet Saver Issue 2 6.22% Variable Ongoing Ongoing 6.40% Monthly

United Trust Bank Ltd 1 Year Fixed Deposit 6.40% Fixed Term 1 year 6.40% At maturity

Anglo Irish Bank - UK 7 Day Notice - Personal Savings Account 6.35% Variable Ongoing Ongoing 6.35% Annually

Northern Rock Fixed Rate Access Bond Issue 3 6.35% Fixed Term 1 year 6.35% Annually

Northern Rock Fixed Rate Access Bond Issue 3 6.18% Fixed Term 1 year 6.35% Monthly

Anglo Irish Bank - UK Easy Access Personal Savings Account 6.30% Variable Ongoing Ongoing 6.30% Annually

Principality Building Society e-SAVER 6.30% Variable Ongoing Ongoing 6.30% Annually

Akbank N.V. AK Savings Account 6.08% Variable Ongoing Ongoing 6.25% Monthly

Chelsea Building Society 1 Year Fixed Rate (7th Issue) 6.25% Fixed Term 1 year 6.25% Annually

Chelsea Building Society 1 Year Fixed Rate (7th Issue) 6.08% Fixed Term 1 year 6.25% Monthly

Derbyshire 12 Month Regular Saver 6.25% Variable Term 1 year 6.25% Annually

Kent Reliance Building Society Direct 1yr Fixed Rate Bond Issue 8 6.25% Fixed Term 1 year 6.25% At maturity

Kent Reliance Building Society Direct 1yr Fixed Rate Bond Issue 8 6.08% Fixed Term 1 year 6.25% Monthly

Leek United 1 Year Fixed Rate Savings Bond 6.25% Fixed Term 1 year 6.25% At maturity

Leek United 1 Year Fixed Rate Savings Bond 6.08% Fixed Term 1 year 6.25% Monthly

Ruffler Bank 12 Month Fixed Rate Deposit 6.25% Fixed Term 1 year 6.25% At maturity

Ruffler Bank 1 Year Fixed Rate Bond 6.11% Fixed Term 1 year 6.25% Quarterly

Shepshed Building Society 1 Year Fixed Rate Bond (Issue 15) 6.25% Fixed Term 1 year 6.25% Annually

Heritable Bank Easy Access Account (Issue 2) 6.21% Variable Ongoing Ongoing 6.21% Annually

Heritable Bank Easy Access Account (Issue 2) 6.04% Variable Ongoing Ongoing 6.21% Monthly

Bradford & Bingley eBond Issue 22 6.20% Fixed Term 1 year 6.20% At maturity

Bradford & Bingley My Time Postal Account 6.20% Variable Ongoing Ongoing 6.20% Annually

Bradford & Bingley eBond Issue 22 6.03% Fixed Term 1 year 6.20% Monthly

Bradford & Bingley My Time Postal Account 6.03% Variable Ongoing Ongoing 6.20% Monthly

West Bromwich Building Society 1 Year Guaranteed Growth Bond 6.20% Fixed Term 1 year 6.20% Annually

West Bromwich Building Society 1 Year Guaranteed Growth Bond 6.03% Fixed Term 1 year 6.20% Monthly

Ruffler Bank 12 Month Notice Deposit 6.05% Tracker Ongoing Ongoing 6.19% Quarterly

Chelsea Building Society PostSaver 40 6.15% Variable Ongoing Ongoing 6.15% Annually

Chelsea Building Society PostSaver 40 5.98% Variable Ongoing Ongoing 6.15% Monthly

Newcastle Building Society NewcastleNet (Issue 7) 5.98% Variable Ongoing Ongoing 6.15% Monthly

Skipton Building Society Regular Savings 6.15% Variable Ongoing Ongoing 6.15% Annually

Birmingham Midshires Online Saver 6.08% Variable 6 months Ongoing 6.14% Monthly

Newcastle Building Society NewcastleNet (Issue 7) 6.13% Variable Ongoing Ongoing 6.13% Annually

Beverley Monthly Saver 6.10% Variable Ongoing Ongoing 6.10% Annually

Mansfield 1 Year Fixed Rate Bond Issue 3 6.10% Fixed Term 1 year 6.10% At maturity

Scarborough Building Society Direct Exclusive Saver 6.10% Variable 1 year Ongoing 6.10% Annually

Leeds Building Society 6 Month Fixed Rate Bond 6.00% Fixed Term 6 months 6.09% At maturity

Scarborough Building Society Direct Exclusive Saver Monthly 5.90% Variable 1 year Ongoing 6.06% Monthly

Icesave Easy Access Account 6.05% Variable Ongoing Ongoing 6.05% Annually

Icesave Easy Access Account 5.89% Variable Ongoing Ongoing 6.05% Monthly

Nationwide Building Society 1 Year Fixed Rate Bond 6.05% Fixed Term 1 year 6.05% At maturity

Principality Building Society 6 Month Fixed Rate Bond Issue 83 5.96% Fixed Term 6 months 6.05% At maturity

Turkish Bank (UK) Ltd 60 Day Notice Account 6.02% Variable Ongoing Ongoing 6.02% Annually

Nationwide Building Society 1 Year Fixed Rate Bond 5.85% Fixed Term 1 year 6.01% Monthly

Abbey eSaver Direct 6.50% Variable 1 year Ongoing 6.00% Annually

Alliance & Leicester DirectSaver 5.84% Variable Ongoing Ongoing 6.00% Monthly

Beverley Postal Account 6.00% Variable Ongoing Ongoing 6.00% Annually

Beverley Postal Account 5.85% Variable Ongoing Ongoing 6.00% Monthly

Chelsea Building Society Double Guarantee (2nd Issue) 6.00% Variable Ongoing Ongoing 6.00% Annually

Chelsea Building Society Double Guarantee (2nd Issue) 5.84% Variable Ongoing Ongoing 6.00% Monthly

As I said in the previous post, it could be 2.30 or 1.90 in 3 months time. If anyone knows which, they can make a fortune. The worst case scenario is you leave it in the UK earning 5.5% and the rate goes to 1.90. The best case is you get 5.5% and the rate goes to 2.30. As I pointed out, the trend for the last year has been down and so the trend for the next 3 months is likely to be the same. So, I think the first case is more likely. You did however pick the right phrase, gamble.

Why should the trend continue?
The Bank of Australia is going to increase interest rates next month.
The Bank of England isn't. They may even drop them.

Remember, the trend is your friend, until the bend at the end.

Mike.

Mike,

Having read all the reports and now understand the forces that affect the exchange rate I agree I think short term then the rate is not getting better (although my crystal ball is foggy) However for those who can leave some back in UK split the risk and leave there long term (12 months ) then I believe the housing market pressures and lowe wage rate increase will all eventually have an effect on booming Oz and something has to bust and I believe that intrest rate swill have to drop or houses drop or something will have to give as poeopl are starting to suffer already according to the media. I think Oz is still riding the wave but its on the turn and I think 12 months could be a telling time and worth a risk.

Each person must make their own decisions as you say its a personal gamble but rate rises like they have in Oz are starting to bust the people who have streached themselves in a booming property market and that spells trouble.

Cheryl

Oh and please dont shoot me I am only a novice and dont really have total confidence/ or knowledge in what I have said but its my little story I have told myself and which I believe (maybe nieve)to ease personal suffering

I also think Australian house prices will level off or even drop over this year. As you say, it has to happen.

My personal prediction on exchange rates is that is will hit rock bottom at $1.90 and will then bounce. Time will tell.

Mike.

WWell,heres my humble opinion if the exchange rate goes to $1.90-£ people may have second thoughts about their move ,i know money is not the most important factor but it is important to be able to afford the lifestyle we are all aiming towards.ie if you had £200k to spend on a house,at$1.90-£ it would get you a $380-000 house,not a great deal at all,but at $2.4-£ would get you a $480-000 house.Now ,keeping money in uk would definately benefit people with a large amount to exchange as the intrest it could make in ozz would be far less than the gain on the exchange rate increase from $1.90-£ $2.4 even after taxation.
heres a few conversions !
£75000 @ 2.0=$150,000
@ 2.1=$157,000
@ 2.2=165,000
@2.3=$172,000
@2.4=$180,000
@2.5=$187,000

Even the experts have no idea which way currency exchange rates will go. For most of us Dollar Cost Averaging is the most sensible thing to be doing to reduce risk.

http://en.wikipedia.org/wiki/Dollar_cost_averaging

Not that i have looked into it a great deal yet,only glanced at my own bank and a couple of others ,the above interest rates seem to be for smaller amounts upto around 5k ,the best i have seen so far for amounts of 100K invested for 1 year with no withdrawals
is 3.85 % is this correct and also if this is the case ,is the rate of 7% in ozz also for smaller amounts
Any idea what would be the best way to look after (earn good interest)with your 100k while waiting /hoping for exchange rates to improve

Nationwide gives 5.55 % remember you get it gross not net as you are not tax resident. This 5.55 % is also e-savings instent access so no having to wait to get it out

I am sure offshore investments would give good rate of return?

Someone on here more finacially aware than me will tell you I am sure

Cheryl

You will still be liable for Australian tax on your interest....you also have to take that into account when trying to work out the best place for your money.

G

I have learned a little bit on this thread to do with tax, etc.

Cheers

Not if you are on a temporary 457 visa.

BTW - we are currently switching money from EUR into Sterling as the EUR:Sterling rate is the best it has been in years. We will then switch to AUD WHEN the rate recovers.

So, when will you exchange?

At 3.00 the rate we got when we visited in Aug 03?
At 2.68, the rate we got when we moved 4 years ago? We should have waited for that $3 again.
At 2.38 the rate I was very lucky to get 8 months ago when I transfered my pension? Should have waited for that 2.60 again.
At 2.25 the rate about 3 months ago? You get the idea.
At 2.11, todays rate? Well.

Do you not see a trend here?

The silly thing is that you got lots of pounds for your euros because nobody wants pounds any more. Watch that Euro fly.

The trend is your friend. Work with it.

Mike.

Regarding the capital gains mentioned earlier, my understanding (from an Australian taxation advisor) the gain is not on the differential in interest rates but between the exchange rates.

So sell up and move to Aus now the rate is say 2.10, If held in Uk for say 12 months and change at 2.40 (yeah right) the capital gain is 30c per £. This could be sizeable.

One thing guys, try not to beat yourselves up over "losses". Sure it makes a difference the rate chnageing but there's no loss - the AUDs you seek you've never owned so there's no loss. Try thinking of it this way - I felt it helps ease the dissappointment!