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Savings/Investment options for cash in UK as expat?

Savings/Investment options for cash in UK as expat?

Old Apr 23rd 2023, 8:24 am
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Default Savings/Investment options for cash in UK as expat?

I have a decent sum sitting in my UK bank account and don't need this in Canada for the time being. What are my options as an expat to earn a decent rate on these savings just to avoid losing to inflation? and have access to it when I need it.
Otherwise I would make a lump sum payment towards the UK mortgage but it doesn't seem wise as I have a lower rate (~3%) locked in. Simple savings options are available for UK residents, but any advice for expats? Thanks
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Old Apr 23rd 2023, 1:57 pm
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Default Re: Savings/Investment options for cash in UK as expat?

NS&I allow people living overseas to open certain accounts. I recently set one up over the telephone and it was quite simple. I did need to get proof of my Canadian address certified.


Originally Posted by pac_les_man
I have a decent sum sitting in my UK bank account and don't need this in Canada for the time being. What are my options as an expat to earn a decent rate on these savings just to avoid losing to inflation? and have access to it when I need it.
Otherwise I would make a lump sum payment towards the UK mortgage but it doesn't seem wise as I have a lower rate (~3%) locked in. Simple savings options are available for UK residents, but any advice for expats? Thanks
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Old Apr 23rd 2023, 6:08 pm
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Default Re: Savings/Investment options for cash in UK as expat?

Originally Posted by pac_les_man
I have a decent sum sitting in my UK bank account and don't need this in Canada for the time being. What are my options as an expat to earn a decent rate on these savings just to avoid losing to inflation? and have access to it when I need it.
Otherwise I would make a lump sum payment towards the UK mortgage but it doesn't seem wise as I have a lower rate (~3%) locked in. Simple savings options are available for UK residents, but any advice for expats? Thanks
You may have this covered, but worth remembering, any gains or earnings are taxable in Canada, which may negate and advantage over paying down a mortgage. Also, any sums over $100,000CAD cost should be reported CRA on each years tax filing.
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Old Apr 23rd 2023, 8:58 pm
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Default Re: Savings/Investment options for cash in UK as expat?

Originally Posted by Hemlock
You may have this covered, but worth remembering, any gains or earnings are taxable in Canada, which may negate and advantage over paying down a mortgage. Also, any sums over $100,000CAD cost should be reported CRA on each years tax filing.
True, on a direct comparison... paying off the mortgage seems straight forward. But I have a 50% chance I may need this cash within the next few years for a down payment or so in Canada. Which is the reason I am looking for an investment option even though the after tax returns may not be attractive.
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Old Apr 23rd 2023, 11:35 pm
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Default Re: Savings/Investment options for cash in UK as expat?

Originally Posted by pac_les_man
True, on a direct comparison... paying off the mortgage seems straight forward. But I have a 50% chance I may need this cash within the next few years for a down payment or so in Canada. Which is the reason I am looking for an investment option even though the after tax returns may not be attractive.
GIC in Canada, Term Deposits in the UK, locked in for defined period, higher rate of return than savings A/C and low risk.
In addition to the tax on the interest earned(income), there is also a currency gain/loss tax (CGT), difference between the GBP/CAD rate from when you acquired the funds or became tax resident to when the funds are exchanged.
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Old Apr 24th 2023, 3:18 am
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Default Re: Savings/Investment options for cash in UK as expat?

Originally Posted by pac_les_man
I have a decent sum sitting in my UK bank account and don't need this in Canada for the time being. What are my options as an expat to earn a decent rate on these savings just to avoid losing to inflation? and have access to it when I need it.
Otherwise I would make a lump sum payment towards the UK mortgage but it doesn't seem wise as I have a lower rate (~3%) locked in. Simple savings options are available for UK residents, but any advice for expats? Thanks
There are inflation-linked property options in the UK but you'll generally be tying up money for 5+ years (unless you find a buyer) and there are other ways to invest in property aside from buying outright or taking a mortgage.I know some are more tax efficient than others but suspect you're not escaping tax reporting in both countries regardless.

You can invest globally from Canada, so if you're sticking around there why not set something up in Canada instead?
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Old Apr 26th 2023, 4:19 pm
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Default Re: Savings/Investment options for cash in UK as expat?

Premium bonds are reckoned to give 3% returns (not guaranteed!) and money is available at a few days notice. Downside is that each individual can only hold £50k.
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