lionheart

Now that UK banks are only offering 0.5% interest or less on savings accounts, the 7% offered by the National Savings scheme here in the UAE looks attractive. My question is: has anybody actually tried to withdraw any money from the NS scheme? It looks wonderful but what worries me is the UAE bureaucracy which tends to make everything difficult. Yes I do know that HSBC Middle East offer 5.3% for on-line savers but my experience with them is that their interest rates go up and down like a tart's drawers.

cashmeremafia

I hear what you're saying but in the current crisis and instability floating around I would (personally) forego a few %% rather than moving my money out of a country / legislation I know well and call my home to a banking system that has a history of treating customers like sh*t.

At least in the UK part of your savings are safe and regulated by UK and EU law.

Smacked

Try ING Direct in UK, they still offer 5%EAR. That's not bad considering every other god dam* bank offer a mere 0.1%. I wouldn' move money out of UK, a lot more secure in UK + if bank goes bust, UK Government will pay back £ 30000 max for every account you had money in. Beware holding money in different accounts but with the same institution i.e HBOS and Lloyds, HSBC and First Direct etc.

lionheart

Do you know if an HSBC Offshore account (in Jersey) would fall within the 30K guarantee?

jrudofsky

Not under the same guarantee, I believe everything in offshore accounts (in Jersey, IoM etc) are guaranteed to 90% by the government of those havens.

The firms pay a levy to operate there and this is what is held as "insurance" money to pay account holders in the unlikely event of said institutions going under.

But i'm a layman and i'm sure others could give you a more technical understanding!

still.unsure

would look into the fine print about depositor protection when it comes to IoM and Jersey as they're most definately not the same as UK 'onshore'.

that aside, the extra interest is because of the extra risk. personally, i'm w/ cashmeremafia on this one, perhaps i'm a little more 'risk-adverse'

Eva

Didn't you ask re this earlier in the year Still.Unsure??
Typical is the man who knows and I seem to recall I.O.M -yes protection
Channel Islands not......


Ah..........http://britishexpats.com/forum/showt...f+Man+offshore

still.unsure

yes, was looking into it myself in a previous thread, just thought i'd add what i had learnt (sort of) about IoM versus Jersey versus UK onshore (that being, read the fine print!) i think lionheart kicked this one off this time

Eva

ye-eh I know it was LH here.Sometimes I am lucid...could just
remember you had inquired about summit re accounts earlier.It's the avi....
It leaves a lasting impression

jrudofsky

Interesting small print, and not what all the Financial Advisers I have come across tell you! Does this apply to just cash current accounts or all investments held in the "havens"?

still.unsure

most of the fine print about deposit protection is only coughed up after throwing a bit of a tantrum and even then, they'll point you to the appropriate regulatory authority... (blah, blah, blah). i believe the depositor's protection is only provided for cash/savings/money management accounts and not any others. (in fact, i read somewhere that lloyds offshore market tracker investment fund is not covered as an example)

but, best to do your research as the fine print seems to change as frequently as the vehicles and interest rates.

good luck!

jrudofsky

Will do....thanks.

Meow

FYI

ING Direct only offer accounts to UK residents and will not pay gross interest.

I believe the 5% account offered by HSBC is for new money only & does not apply to monies in existing accounts with them.

I know several people who have withdrawn money from UAE National Bonds without problems. Still worth doing for smallish sums IMO.

-

still.unsure

i also remember someone on here having a go at the bbi.co.im account too as they were offering reasonable interest from and IoM account

Jim Smith

Re National Bonds.......I withdrew around 100K I had put there pending completion of my now sold flat! No problem withdrawing it in one shot. It also was quite profitable as I made around 10% when the profit and winnings for the year were combined!