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Expat Investor : August 2009
EXPAT SAVINGS Extra deposit protection for temporary high balances provides the UK with the scope to provide such protection. The current maximum deposit protected by the FSCS is £50,000 per individual per bank or building society. The UK’s Financial Services Authority (FSA) has issued a consultation paper seeking views on whether the Financial Services Compensation Scheme (FSCS) After 19 years serving expats ALIL remains at the forefront of the International Savings market. should provide extra protection for holders of temporary high deposit balances in the event of the failure of a UK bank, if the EU Deposit Guarantee Schemes Directive But some bank customers occasionally have balances far in excess of this at a single institution as a result of transactions such as selling a house, receiving an inheritance or pension lump sum, or an award for personal injury. Thomas Huertas, director, banking sector, at the FSA, says, “We are proposing that such transactional temporary high balances should have additional FSCS protection. “Our proposals will protect people who have little or no choice about holding a high balance for a limited period over the current FSCS limit of £50,000 before they can diversify it, if they wish, between different institutions. However, the FSCS is not intended to protect consumers who keep high account balances for a long period, so the extra protection will be time limited. “This change would contribute to the banking reform objective of providing effective compensation arrangements in which consumers have confidence.” Views are being sought on whether temporary high balances should benefit from additional FSCS protection where they arise in connection with: ? sale of a primary residence and property bought for dependent relatives, for use as their primary residence ? pension lump sums ? inheritance ? divorce settlements ? redundancy payments ? proceeds of pure protection contracts ? court awards and out-of-court settlements for personal injury. There would be a monetary limit of £500,000 and a time limit of six months for claims under the first six points. For personal injury awards and settlements there would be unlimited additional protection and the time limit would be 18 months to reflect that personal injury awards and settlements are often intended to provide an income for the rest of the injured person’s life and that it may be difficult to assess for some time how the money should be allocated and invested between financial BANK OF SCOTLAND INTERNATIONAL Bank of Scotland International has offshore savings accounts in sterling, euros and US dollars and across a range of terms – monthly income, annual interest or interest on maturity. The Bank has continued to enhance its savings portfolio and its sterling fixed rate products and capital guaranteed savings bonds are a fundamental part of this. “The account enables them to choose when and how they receive their monthly income, setting the date they get the monthly interest paid and which account it should be paid into.” For customers that wish to protect their saving balances from fluctuation in interest rates, Bank of Scotland International’s Sterling Fixed Rate account offers a rate of up to 3.20% on its one, two or three year terms. This account ensures that customers will know what they will earn and receive as a return. In addition, the Bank of Scotland International Offshore Monthly Income Account enables customers Continued on page 4 July/August 2009 ? EXPAT INVESTOR 3
May June 2009
September October 2009