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best return on savings?

best return on savings?

Old Jul 9th 2008, 4:45 pm
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Default best return on savings?

hi i searched the forum threads to no avail i wondered if anyone could advise me on the best route to getting the best return in savings accounts.

assuming we sell our house, where would you get better rates on long term deposits ,UK or Canada?

then i suppose you would be paying tax at either Uk or Canadian rate?

any financial whizzes out there that can save me from the migrane .our plan is to rent in vancouver and i am trying to see what the shortfall will be

thanks folks
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Old Jul 9th 2008, 4:49 pm
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Default Re: best return on savings?

Canadian savings account interest is abysmal, but if you put (some of) it in a canadain RRSP (once elibigle) , then you will get 30 or 40% back in tax refund, which is a reasonable one year return, regardless of how well the mutual fund itself does subsequently. The down side is that you do get taxed on withdrawals as income, so its only really suitable for a long term retirement savings strategy, rather than if instant access to the funds is desirable.

In the mean time I would leave it in the UK, you would pay tax on the interest in a regular canadian savings account anyway, and you can only be taxed on the income once.

Last edited by iaink; Jul 9th 2008 at 4:54 pm.
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Old Jul 9th 2008, 4:50 pm
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Default Re: best return on savings?

Iasked this same question a few weeks ago - I suspect you can earn more in the UK - but take account of any tax issues if it is a considerable sum.

Here was my other thread for you info
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Old Jul 9th 2008, 4:58 pm
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Default Re: best return on savings?

thanks to both of you sorry anne i missed your thread but the content is appreciated.

ian how do you become eligible for RRSP? could this be done through HSBC or is it a goverment ISA type deal

thanks
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Old Jul 9th 2008, 5:01 pm
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Default Re: best return on savings?

Originally Posted by edinburgh View Post
thanks to both of you sorry anne i missed your thread but the content is appreciated.

ian how do you become eligible for RRSP? could this be done through HSBC or is it a goverment ISA type deal

thanks
Its an ISA type thing, virtually every financial service provider has RRSP eligible funds and accounts. You are basically eligible as a Permanent Resident after your first tax return is processed. They will base your annual maximum contribution limit on your reported income, so before they tell you that I'm not sure you can contribute yet...but you might be able too. Not an option if you only have a TWP as far as I know.
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Old Jul 9th 2008, 5:12 pm
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Default Re: best return on savings?

Originally Posted by iaink View Post
Its an ISA type thing, virtually every financial service provider has RRSP eligible funds and accounts. You are basically eligible as a Permanent Resident after your first tax return is processed. They will base your annual maximum contribution limit on your reported income, so before they tell you that I'm not sure you can contribute yet...but you might be able too. Not an option if you only have a TWP as far as I know.
It's also worth pointing out that there is an absolute limit on how much one can put into an RRSP each year. The allowance is 18% of earned income, with an upper limit of C$20k.
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Old Jul 9th 2008, 5:44 pm
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Default Re: best return on savings?

Originally Posted by edinburgh View Post
hi i searched the forum threads to no avail i wondered if anyone could advise me on the best route to getting the best return in savings accounts.

assuming we sell our house, where would you get better rates on long term deposits ,UK or Canada?

then i suppose you would be paying tax at either Uk or Canadian rate?

any financial whizzes out there that can save me from the migrane .our plan is to rent in vancouver and i am trying to see what the shortfall will be

thanks folks
There are good interest rates to be had by opening an offshore savings account. Bradford and Bingley have one based on the Isle of Man but there are others. The interest is not taxed and you do not have to declare it to Revenue and Customs in the UK, but you should declare it to Revenue Canada as it is classed as worldwide income.
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Old Jul 9th 2008, 10:06 pm
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Default Re: best return on savings?

thanks for this will have a look at bradford and bingley
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