freddie_freeloader

Hi All

I have been in the US for over a decade but have some funds parked in a UK High Street Bank. I am thinking what I might be able to do with this money to generate a relatively low risk income above the 0.1% I currently receive. I will need to pay taxes on this income in the US and so unless it is at a decent rate it hardly seems like the effort. For example I can contribute a max of £300 a month to a savings account with the same bank for a 1% return as long as it stays in the account for a year. This falls into the not worth the effort bucket as I will need to then spend more time on this in terms of US taxes.

Interested to know what else you might be doing. This is money I might need in <5 years so not looking at stock market investment. I guess bonds / gilts are an option but again not sure its worth the effort.

Cheers

Arb

robin1234

NS&I Green Savings Bond now pays 1.3%. They mature in three years.

But I agree with you, is it worth the bother, for an income of tens, or a couple of hundred, pounds per annum. Every new account you open is adding to your reporting burden to the IRS and the Treasury in subsequent years.

tht

how is this more work? Typing $1 or $1000 on your tax return is not really more work. Whether the account is in the UK or US you still have to report the interest you earn, even if it’s less than $10 and you don’t get the 1099-INT.

The only upside to moving it to the US Would be if it took you below the FBAR reporting levels.

robin1234

Having additional accounts is more work (three accounts instead of two, for instance.) An additional entry on the FBAR and 8938, if applicable.