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-   -   how to maximize savings? (https://britishexpats.com/forum/usa-57/how-maximize-savings-314598/)

Chandler Jul 18th 2005 5:47 pm

how to maximize savings?
 
I've open up a "High Yield Savings Account" here in the US with Chase. The Interest rate for which I now discover (funny they don't advertise this before hand) is 1% per annum.

I wrote to them thinking that this must be a mistake. It transpires that it is "High Yield" only when compared to my current account which pays 0.3% per annum! Funny, I wasn't aware of this either.

I did some searching and ING offers a much more favorable 3%. However, this got me thinking, why not move off-shore and get a higher rate of interest?

Does anyone have any experience of this?
- I'm presuming that because I am not opening a UK account it won't matter that I no longer reside in the UK (different regulations)
- I also presume that the IRS would like me to pay tax on the interest earned. I'm not looking to dodge this, but I'd rather pay interest on 5.5% off shore than 3% on.

Thanks

Big D Jul 18th 2005 9:50 pm

Re: how to maximize savings?
 
I would be interested to hear people's opinions on this. I still have mortgage etc at home so my plan was to build up a cushion here and send home when the exchange rates were favorable ( and they seem to be heading the right way now), I can get a decent rate thru work so that isn't a problem. I would rather have my cash in the egg savings account back home than doing nothing for me over here!! Because i plan to send back to the UK i don't want to tie it up for too long, but haven't seen anything decent over here.

Chandler Jul 18th 2005 10:57 pm

Re: how to maximize savings?
 

Originally Posted by Big D
I would be interested to hear people's opinions on this. I still have mortgage etc at home so my plan was to build up a cushion here and send home when the exchange rates were favorable ( and they seem to be heading the right way now), I can get a decent rate thru work so that isn't a problem. I would rather have my cash in the egg savings account back home than doing nothing for me over here!! Because i plan to send back to the UK i don't want to tie it up for too long, but haven't seen anything decent over here.

I actually intend doing likewise, but I want to keep my $ here for 18 months (lowering interest rates in the UK etc hopefully strengthening the $) hence my desire to get the best rate I can on a savings account. A USD off-shore seems the way to go with a measly 3.5% being the best that I have yet heard of on shore.

The IRS should thank me, I'm actively trying to find a larger rate so that I can pay them more tax. What a good citizen I am. :rolleyes:

krizzy Jul 19th 2005 1:36 am

Re: how to maximize savings?
 
What are savings........????

anotherlimey Jul 19th 2005 1:46 am

Re: how to maximize savings?
 
This might help:

http://www.offshore.hsbc.com/1/2/int...vings-accounts

Interestingly, when you search for "offshore savings US" on Google, most of the results are from UK banks.

sid_s Jul 19th 2005 3:43 pm

Re: how to maximize savings?
 
I investigated this a while go, but I could not find an offshore $ account that paid a decent rate of interest either (and they often have charges). I'm just keeping mine in ING at the moment.

You can open an offshore sterling account that pays over 5% but then you are back to the problem of having to convert your money from $ to sterling at a time when exchange rates are low. If you decide to do that you might as well just send it to Egg.

Shish kebab Jul 19th 2005 7:38 pm

Re: how to maximize savings?
 

Originally Posted by anotherlimey
This might help:

http://www.offshore.hsbc.com/1/2/int...vings-accounts

Interestingly, when you search for "offshore savings US" on Google, most of the results are from UK banks.

For the HSBC offshore you need to keep a min balance of $5000 in your account at all times. I am with them at home and already looked into there offshore the extra fee's are not too bad.

Chandler Jul 19th 2005 10:00 pm

Re: how to maximize savings?
 

Originally Posted by Shish kebab
For the HSBC offshore you need to keep a min balance of $5000 in your account at all times. I am with them at home and already looked into there offshore the extra fee's are not too bad.

What is their rate for off-shore? HSBC is 3.25% here in the US.

I checked their website and I think the off-shore USD is actaully lower.


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