Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

how to maximize savings?

how to maximize savings?

Old Jul 18th 2005, 5:47 pm
  #1  
No, it's toe-mart-o!
Thread Starter
 
Chandler's Avatar
 
Joined: Jul 2004
Location: Manhattan
Posts: 264
Chandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant future
Default 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

Last edited by Chandler; Jul 18th 2005 at 6:24 pm.
Chandler is offline  
Old Jul 18th 2005, 9:50 pm
  #2  
BE Forum Addict
 
Joined: Oct 2004
Location: The Big Apple
Posts: 1,834
Big D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond reputeBig D has a reputation beyond repute
Default 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.
Big D is offline  
Old Jul 18th 2005, 10:57 pm
  #3  
No, it's toe-mart-o!
Thread Starter
 
Chandler's Avatar
 
Joined: Jul 2004
Location: Manhattan
Posts: 264
Chandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant future
Default 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.

Last edited by Chandler; Jul 18th 2005 at 11:10 pm. Reason: uping rate!
Chandler is offline  
Old Jul 19th 2005, 1:36 am
  #4  
Re vera, potas bene.
 
Joined: Jun 2005
Location: Cape Cod MA..Davenport FL
Posts: 2,405
krizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond reputekrizzy has a reputation beyond repute
Default Re: how to maximize savings?

What are savings........????
krizzy is offline  
Old Jul 19th 2005, 1:46 am
  #5  
Lost in BE Cyberspace
 
Joined: Feb 2004
Posts: 13,585
anotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond reputeanotherlimey has a reputation beyond repute
Default 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.
anotherlimey is offline  
Old Jul 19th 2005, 3:43 pm
  #6  
Forum Regular
 
Joined: Apr 2005
Location: Brisbane
Posts: 143
sid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nicesid_s is just really nice
Default 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.
sid_s is offline  
Old Jul 19th 2005, 7:38 pm
  #7  
Forum Regular
 
Joined: Nov 2004
Location: Los Angeles, UK
Posts: 104
Shish kebab is just really niceShish kebab is just really niceShish kebab is just really niceShish kebab is just really niceShish kebab is just really niceShish kebab is just really niceShish kebab is just really niceShish kebab is just really niceShish kebab is just really nice
Default 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.
Shish kebab is offline  
Old Jul 19th 2005, 10:00 pm
  #8  
No, it's toe-mart-o!
Thread Starter
 
Chandler's Avatar
 
Joined: Jul 2004
Location: Manhattan
Posts: 264
Chandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant futureChandler has a brilliant future
Default 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.
Chandler is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.