kalaar

Hi,

I've been in Dubai now for about 18months and have about 12 more until I leave (hopefully to Canada rather than back to the UK). I am also fully UK non-resident (even got some unexpected cash back off the tax man which was nice).

I'm currently in the situation where the next years rent is paid, the car was bought cash etc so I'm going to be sticking a significant amount of cash (well significant to me ) per month in the bank, about 20-25k Dhs. I currently bank with Llloyds out here and have a Dollar offshore account. I went in there the other day to see about maybe sticking it somewhere to earn a little interest but was offered a standard savings account on about 0.5% which is laughably little.

Any pointers on what I should do with the cash? I won't need it for the next year so it should start to accumulate nicely but I can't see myself being able to leave it in the bank for several years to make an investment portfolio worthwhile. I did consider sticking it in my online saver back in the UK as thats about 5.5% but the exhange rate means I lose a tonne that way.

Basically is there anything I can do for the relative short term of 1 year?

Thanks

Meow

If you are talking a year then monies should remain on deposit and not be invested. Have a look at fixed term deposits as those rates should be higher.

As US Dollar interest rates have fallen so have the savings rates, although Sterling rates are higher. Have you thought about putting at least part of it in National Bonds? Capital secure, chance of a win and the return (not interest as it is Sharia compliant) last year was 6.03%.

Blue Cat

I second National Bonds

Confucius

Me too...Looks Islamically interesting...

angelynv

and how can these be purchased then?

Meow

Also available online.

http://www.nationalbonds.ae/aboutus.htm


Please read thoroughly before purchasing!

angelynv

ta!

macteepee

Is there anything similar for BAH?

Blue Cat

you don't have to be resident in the UAE to buy bonds. We have got them for our daughter - she has won about 500 dhs in prizes and also got over 200 dhs in interest for the last year

angelynv

one more question, say i put some money in for a couple years, accrue return, prizes, then take out and take with me back to UK - i wont be charged tax on it right?

Meow

You may have a tax charge on taking it back to the UK - depends on where the investment came from, your tax status and allowances.





By the way - Am I get loads of karma from everyone for all this free advice??

macteepee

I don't know how the Karma thing works......

Meow

Left hand side - under a person's username/avatar is a little blue box called 'karma'. Click on that & comment.

Easy peasy!

arbroath_abroad

yes, some lovely lady gave our daughter a present of some bonds.....

Blue Cat

wow!!! how lucky is she