Sterling savings account
 

Don't know if this is of interest to anyone and perhaps you're aware of them already but it has just come to my notice that NS&I (the state owned savings bank in the UK) offers a few products which even non-residents can apply for.
For example, if you want instant access, there's a Direct Saver account that pays 1.8% gross.
And if you're prepared to lock your money away for 3 years, there's a Green Bond that pays 3%.
I know these returns sound paltry but it's an improvement on the zero percent I'm currently getting from our one remaining UK bank account. So they might be of interest to anyone who has savings similarly languishing in a UK current account or who wants to start sending money to the UK with a view to moving back in a couple of years.
I haven't applied yet (I accidentally left my passport in the UK) but will report back on the procedure once I've done so.

Re: Sterling savings account
 

I can confirm that NS&I is pretty good and my wife and I have had accounts with them shortly after moving back. When we first moved they didn't allow USCs but now they do.

Our daughter arrives back here in 10 days time and NS&I is something I will recommend since you can up to £1m saved with them which is very useful as a place to park your house money. We were stuck with savings banks when we moved back and I had our house sale money in multiple accounts for several months while we bought one here to try and stay below the £85k insurance threshold.

We even have premium bonds with them, all online, prizes paid directly into our bank account. Today my wife won £200 and I won £75. A little excitement each month :lol:

Re: Sterling savings account
 

We recently opened an NS&I Direct Saver for each of us prior to moving back. The process is straightforward on the phone, requiring two certified copies of ID/address for each account which could be scanned and uploaded. You do need an existing UK bank account though. Annoyingly, I found that I couldn't pay to the NS&I direct from my Wise account but had to send via our UK bank.

The max deposit is £2m per person, not £1m.

Re: Sterling savings account
 

Thanks very much for that info.
It could be a good option for some of my colleagues here in France who’ve received letters from Barclays, etc announcing that their accounts are to be closed next year.
Strange that one can’t pay into the NS&I savings account from the Wise account. I wonder - once you’ve completed the initial setting-up and shown that, at the time of opening, you have a UK account - whether you can pay in sums directly from a French bank account.

Re: Sterling savings account
 

Thanks for the update. Interesting that even with a valid UK sort code and account number you can’t link it to NS&I if it resolves to the bank Wise uses.

Re: Sterling savings account
 

I find it weird that you can’t pay in sums from a Wise sterling account, given that NS& say:

To save with us, you’ll need a UK bank or building society account in your name. This is because we can only make payments to, and receive payments from, a UK account in pounds sterling.

In that case, NS&I is no solution to the problem of UK account closures facing many Brits living in France.

Here - in full - is what NS&I say on their website:Living outside the UK

We've always been a UK savings provider, backed by HM Treasury, but we do have some customers who live outside the UK. If you’re considering moving abroad or currently live outside the UK, there are a few things you’ll need to know to make sure that our accounts are still suitable for you.

You need a UK bank or building society account

To save with us, you’ll need a UK bank or building society account in your name. This is because we can only make payments to, and receive payments from, a UK account in pounds sterling.



Some banks in the UK have informed customers living in countries within the EU that they are no longer able to hold their UK bank account following the end of the Brexit transition period.

How does this affect me?

If you’re an NS&I customer living in the EU, then this could affect you if you’re no longer able to hold a UK bank account.

This is because, without a UK bank account, it’d be both impractical for you to hold an account with us as well against the terms of your NS&I Customer Agreement (terms & conditions).

About your NS&I Customer Agreement

Your NS&I Customer Agreement requires you to keep a UK bank or building society account open to be able to operate an account with us. If your bank closes your account – and you’re unable to provide details of another bank or building society account held in the UK – then you’ll no longer be able to hold an NS&I account. You’ll be unable to make further deposits or open any new accounts with us.

What should I do?

The advice each bank has given to their customers has varied, and not all banks have said whether or not they intend to close the accounts of customers living in EU countries.

Therefore, we recommend that you check with your bank account provider in the UK to see whether they intend to close your account – if you’re still able to hold your UK bank account then you don’t need to do anything.

However, if you’re no longer able to hold your UK bank account – or your provider intends to close your account – then you’ll need to let us know details of another bank account or building society held in the UK. The account will need to be able to accept payments made by BACS transfer.

If you’re unable to provide details of another UK bank or building society account then you’ll need to decide whether you want to move money out of your NS&I account while it’s still practical for you to do so. Remember, if we’re unable to pay money to a UK bank or building society account, our only alternative is to send you a warrant (like a cheque), which could be costly to deposit into a non-UK bank account. For some NS&I accounts held, this would also have to be a one-off payment to close your account.

Re: Sterling savings account
 

Am in a queue to speak to an agent to see why one can’t pay into the Direct Saver account from a Wise sterling account.

Re: Sterling savings account
 

They will pay out to Wise but won't accept deposits. I was caught out with a bond. I didn't realize you could not cash in a bond before maturity.

Re: Sterling savings account
 

Here’s the answer:

”No, we wouldn’t accept funds from a Wise account. You would need to use an alternative account in your name”.

DARN.

Re: Sterling savings account
 

Thanks for all the research. Our daughter is planning to open a UK bank account after she arrives although not necessarily one with bricks and mortar branches. The top 3 banks for checking accounts in this month’s Which? reports were all online banks.

Re: Sterling savings account
 

Hope your daughter’s move goes smoothly. She’s lucky to have a nice clued-up Dad to help her through the process.

Re: Sterling savings account
 

The Dad is clued up because when he went through the same move some years ago he asked lots of questions and learned from the experience of folks on this forum and others. :)

Re: Sterling savings account
 

Great to know this, I'm not sure if I should use it or not? Is the deposit insured like US banks have FDIC? Also why is this better for holding house purchase cash than a regular bank, such as Lloyds?

Re: Sterling savings account
 

Hi Kate

I originally thought it might be of interest to people in, for example, France who have been informed that their UK banks are closing their accounts.
But I’ve since discovered you must hold a UK bank account throughout the entire period that you hold an NS&I account.

It’s still of interest to me personally, though, because I DO have a UK bank account (which is not - yet - threatened with closure) and am earning zero interest on it.
Also, any money in my UK bank account is covered under the UK government compensation scheme up to
£85 000. But not beyond.

Savings in NS&I accounts are 100% secure because they’re backed by the Treasury.

So possibly still a good option for some people.

Re: Sterling savings account
 

As Helen says it is secure because it is backed by the UK Treasury just like Treasury Direct I-Bonds are backed by the US Treasury. Neither institution has ever defaulted on their bond obligations.

It is better for holding a house purchase than a regular bank such as Lloyds because they are only covered by the banks insurance scheme up to £85,000. NS&I wasn't available to me when I first moved back and was moving money over to buy a house, I had to scatter it between several banks to make sure it was all insured. (FBAR and FATCA reporting was quite extensive compared to if I had been able to park it all in a single account)