by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Expat Investor : October 2007
expatinvestor.com 24 EXPAT INVESTOR October 2007 FIRST PERSON What's driving the American equity markets? Despite the economy slowing in the first quarter, the American markets still represent good value, especially as GDP is expected to remain stable in the second half of the year and accelerate into 2008. It is worth bearing in mind that, while the US may not be the fastest growing economy, it is still the largest, and it benefits from the rapid growth seen internationally. Tw o metrics that are useful as a broad-based gauge of the state of the economy are the earnings growth figures and the level of unemployment, currently at 4.6%. Unemployment is expected to increase slightly, however; it is still at multi-year lows, and a long way from its last peak in mid-2003. Corporate balance sheets are looking extremely healthy, with high levels of cash. This hascomeonthebackofarunof14 quarters of double digit earnings growth. In 2006, earnings grew 16.6%, while the S&P only rose 13.6%. This has left the indices priced at very reasonable levels. As earnings growth looks to continue well into next year, this gives scope for the markets to rise without getting more expensive on a price-to- earnings basis. While the Fed did raise rates consecutively 17 times to the current level, they are still at historic lows, and the earnings yield is still above the yield on the 10 year bond. Companies have been taking advantage of this situation to re- structure their balance sheets, increase dividends and buy back stock at record levels, leaving these companies in impeccable shape to go forward. One of the current key concerns is the sub-prime mortgage sector, and the rate of defaults. Pundits generally do not believe that this will spread into the broader economy, but we have seen a greater than expected hit to the financial sector. These concerns are mainly concentrated at the bottom 20% of the economic spectrum, and they only account for about 5% of consumer spending, and as two-thirds of the American GDP is consumer related, this is not expected to cause any major headaches. Lending standards being raised should also not be an ongoing concern. In addition, the consumer has increasing levels of untapped credit lines. The real problem is where all the repackaged mortgage debt is showing up, so far mainly in hedge funds, but no one really know the full scope of the fallout yet. The fact that we are seeing the level of M&A activity increase year- on-year is also another sign that the markets are offering value. Never before have we seen such a boom in the private equity sector, with many blue chip companies being taken private. This also has the secondary effect of increasing liquidity, and as a result there is more money chasing fewer stocks, another factor pushing the markets higher. However, more recently, with the whole sub-prime concerns, M&A activity has tailed off as it has been harder to raise the funds through issuing debt. Even if the US housing market continues to fall, it would have to fall a considerable distance for a substantial proportion of the American population to be facing a negative equity situation. On average, investors who bought a house in 2004 would currently have a home equity cushion of around 23%. The level of inflation in the US is still a primary concern to the Federal Reserve. The core level of inflation is currently above the Fed's comfort zone of 2%, but the rate rises are starting to have their desired effect, and the core CPI is starting to level off and drop into the required bracket. Even if the American economy does continue to slow, there are still plenty of good investment opportunities. Furthermore, around 30% of the earnings from companies in the S&P500 are derived internationally, and this is a growing figure as companies try to expand globally. Going forward, if we do see the Fed cut rates, this may have an effect on the carry trade (this is looking more likely at this time due to sub- prime concerns), which could see the dollar depreciate further. This is a concern for the non-dollar investor. In 2006, the US dollar depreciated 13.7% against sterling. So a sterling investor would have to see 13.7% return on their investment just to stay level. However, if the dollar does depreciate, the value of international sales increases, raising profits for the companies that do have an international exposure. The real problem is where all the repackaged mortgage debt is showing up, so far mainly in hedge funds, but no one really knows the full scope of the fall- out yet. In summary, America remains a stable economy to invest in, with many good opportunities. Valuations are attractive on a historic basis, earnings growth is still positive and GDP is looking to stay stable for the reminder of the year and accelerate into next. Unemployment is at long- term lows, inflation is coming under control and the equity market is shrinking. On a technical level, the S&P and Dow are looking healthy, and this correction has provided a good entry point. The American markets, therefore, have scope to extend the bull market rally we have seen over the previous few years. To find out more from Ashburton, enquire through the fast facts number below. Despite a sluggish economy, American equity markets can still offer good value. Jonathan Aldrich-Blake, Assistant Investment Manager of Ashburton's (Jersey) Americas Equity Fund, explains what's going on and what investors can expect. Fast Facts 88490 Over a third of UK homeowners admit to leaving their insurance documents languishing in a drawer unread instead of going through them to familiarise themselves with the level of cover and ter ms and conditions of their policy. Tesco Home Insurance's latest study shows that two out of five people (41%) concede that although they are aware of their contents cover limit, it might not be enough as they have never checked if it's sufficient for what they're actually insuring. Allan Bur ns, head of Tesco Home nsurance, comments, "We would rge all homeowners to read rough their documents to miliarise themselves with the ter ms conditions of the policy they purchased. If they are unsure y points, they should contact nsurer for clarification." s top ten tips icy selection e what you need -- buildings ents cover or contents only. sing your buildings and over together is usually e than buying from two When shopping around for the best price, check that the policy limits and extent of cover are adequate for your needs -- not all insurers are the same. Identify any valuables worth more than your insurer's individual article limit (jewellery, plasma TV). You'll need to specify these items on your policy. Read your policy documents when you receive them to familiarise yourself with the details. If you're in any doubt contact your insurer. Make a note of all your home contents and how much they're worth in total -- you don't want to be underinsured. Keep your insurer updated with any changes that you think might have an impact on your policy. Consider if you need per sonal belongings cover while out of your home. It may be a false economy leaving it off your policy. Consider buying family legal protection cover---it could save you hundreds of pounds. Consider buying accidental damage cover -- especially if you're a DIY enthusiast or have accident prone kids! STATISTICS AND ANALYSES Homeowners leaving policy documents unread warn of retirement r-funding away mobiles 2m A medley of statistics and analyses revealing much about our responses to saving, investing and spending our money. Hidden a loved one Britain pours its h out... to complete strangers Wedding bells should ring insurance alarm bells New research from Abbey Cu Accounts reveals that 7.5m Br that's 12% -- keep a sneaky CASHFLO (Current Account Secretly Hidden From Loved One That equates to one-in-seven cur rent accounts held in the UK. While Brits have long been known for their modesty, especially when it comes to money, Abbey questions whether the nation's obsession with discretion may have gone too far, especially since money is a common cause of conflict amongst British couples. Research from the Financial Services Authority (FSA) found that three-quarter s of couples p to foll Abb CASH both se NFU Mutual is reminding newlyweds to review their home contents cover following the big day. Despite many couples receiving a gift list full of presents, less than one in 10 married people thought to check their level of cover following a wedding. Of all those surveyed who have ever been married, almost half did not review their home contents insurance after the big day and nearly a third simply do not recall whether they checked their cover after their nuptials. The gift list market, estimated to be worth £267.2m in 2006, continues to grow, and many brides and grooms are including everything from £500 plasma screen televisions to expensive crystal glasses and Pe ople in Britain are willing to pour their heart out and share personal details about their love life, family life and work problems with complete strangers, research by secure online payment provider PayPal reveals. The research looked at how much infor mation people in Britain unwittingly reveal about themselves to people they have known for less than 24 hours. And it revealed that it's no holds bar red, and Brits literally do not know when to shut Common catastrophes include leaving mobiles in the pub (810,000 handsets) in a taxi (315,000) or on a bus (225,000). More bizarrely, pooches chewed their way through 58,500 handsets last year and 116,000 went through a spin cycle with the dirty laundry. The research found that over a quarter of mobile owners had lost or damaged a handset, with men more prone to carelessness than women -- 28% of men admitted to breaking or losing their phone compared to 26% of women. There is some hope,however, as ople become more careful with e. Although 40% of under-34s mitted to losing or damaging their dset, this dropped to a mere among the over-55s. up. Three millio admitted that the what is wrong with almost complete str double the amount o problems at work, an about their private me problems. Wo rryingly for Brits,h million say they regretted their secrets the next day, a quarter say they were not ev why they chose to talk about problems to people they do no know. A further 15% said too m because they were drunk. The research also revealed that 20% o people in Britain divulged their secrets to strangers they met on the bus and will never see again, with 46% opening up to a stranger at a party, and with 36% telling all on a first date. Cristina Hoole, from PayPal, comments, "There is, of cour se, a serious point to be made; people need to be careful about giving away too much information, such as financial or medical details, to people they do not know, which can leave you open to unscrupulous people out there." Wedgwood dinner services running into thousands of pounds on their wedding lists. However, most do not check their insurance to reflect these changes. In order to reduce the stress in the lead-up to the big day, NFU Mutual automatically increases the amount of home contents cover in the household by 10% or £5,000, whichever is the greater, for the month before and after the nuptials. David Oram, Personal Insurance Underwriting Manager at NFU Mutual says, "There is a great deal of excitement in the run up to a wedding and naturally, the practicalities of checking your home insurance can sometimes be forgotten. "A lthough NFU Mutual offers newlyweds the luxury of a temporary automatic increase, once the honeymoon period is over, we urge couples to review their levels of cover. "You can check whether your insurance is of the right value by using the NFU Mutual home insurance contents calculator. By simply typing in the value of the items you have around your house, including your brand new wedding gifts, the calculator will help you check whether you have enough cover in minutes. "It might not be the most romantic way to begin married life, but it should give you peace of mind and guarantee you are covered." October 2007 EXPAT INVESTOR 5 Friday 13th - not unlucky for some Friday the thirteenth is not as unlucky a date as folklore would have us believe, reports Barclays Home Insurance. According to its records, the number of claims made to Barclays Home Insurance on Friday 13ths since 2005 has actually been lower than the number of claims made on other Fridays -- on average decreasing by approximately 15%. This includes a decrease in the number of claims for accidental damage, theft, water damage and fire. Mark Till, Product Director, Barclays Insurance, said: "As the figures show, this so-called unlucky day in fact seems to have been luckier for UK homeowners than most other days. Maybe it's the threat of bad luck causing people to be more cautious and aware of potential accidents or perhaps it's just that the myths are wrong and Friday 13th is not actually unlucky; our statistics would certainly seem to support that theory!" IFA Insights Sur vey anging nature of ng and saving for show that almost s (88%) believe er of people will t the age they overwhelming pect the ment to rise t 10 years. to the for people tirement pressures IFAs say support d 74% believe people will receive less inheritance and will therefore have to save more to provide for the future. And 71% report that people are already resigned to a significant reduction in their standard of living in retirement. Addressing the savings gap, almost nine out of 10 IFAs said they recommended investing more in pensions, though the same number say they recommend finding alter native means of investing for re tirement indicating a desire to create a balanced portfolio. Confidence in pensions is clearly an issue, with 91% believing pensions are suffering from a lack of consumer trust and need to be promoted more. Fast Facts 8 8486 Fast Facts 8 8480 PROPERTY INVESTMENT October 2007 EXPAT INVESTOR 23 Mortgage monitor -- a market view Tim Har vey, Managing Director, Offshoreonline.ORG, places a spotlight on the euro mortgage market for expatriate investor s. Flight paths can seriously damage the price of your home Wales is hot as buy-to-let stays strong Rental demand outstrips supply Celebrity price premium fuels property profit potential The introduction of a new website by BAA,which tracks flight paths over London, is a welcome and a useful tool for homebuyers, according to Jonathan Haward, Managing Director of The County Homesearch Company.Mr Haward war ns, "While the prices for properties under flight paths in London and other major cities are not seriously marked-down, houses in the country that are in the 'noise range' of flight paths can be significantly cheaper. "House prices in places like Barnes or Richmond upon Thames, which are affected by aircraft noise as they fall directly in line with Heathrow,tend to be relatively unaffected. However, it is a very different story if you're are looking to buy in the country. I have known houses that lie within the range of Gat wick airport to be 30% cheaper than those where aircraft have climbed to 7,000ft--10,000ft or more Euribor rates are reflecting the market expectation of a further rate rise of 0.25% in around one month, which m eans European banks may well have to raise variable mortgage interest rates again soon. European mortgage banks use the Euribor reference rate as their reference point for pricing variable rate home loans for both domestic and overseas buyers. Typically, the lending bank will add a margin of anything from 1% to over 2% to the quoted Euribor rate, depending on the type ofpr oduct, size of deposit and assets of the borrower. Different banks use different Euribor rates as their base for pricing loans, with the most common being one, three and 12 months. Three month Euribor has now risen from 3.7% in January of this year to nearly 4.7% and this picture of rising central bank interest rates in Europe has reflected the situation in the UK,where UK base rate rise several times this year. However,the picture is not universally gloomy. U nlike UK lenders who tend to move m ortgage Nearly 2 million Brits are investigating their homes' 'celebrity pedigree' in a bid to cash in on a house price premium of up to 10 per cent, according to findings published by Ancestry.co.uk.The findings indicate that house history is fast becoming the latest property craze, with one in five Britons currently researching the history of their property. Ofthis number, 21% -- the equivalent of 1.7 million people -- are doing so to uncover famous, or infamous, former occupants. And it's no wonder these property gold diggers are so keen to track down celebrity predecessors, as experts estimate that stellar residents can add significantly to a home's value. National property specialist Strutt & Parker reports that well-known rates as soon as UK base rate is changed, some European lenders take a more flexible view,with many waiting for some time after a change in central bank rates before announcing interest rate changes. Interest rates of 3.90% fixed for the first year are still available in France, a rate which is only marginally higher than the 3.75% being offered in January. New buye rs now can still lock into fixed rates as low as 3.90% for 12 months, a figure which has hardly mov ed this year. Fixed rate loans do exactly what they say on the label, for example, there are no lock-in periods or punitive interest rates at the end of the fixed rate term.For those borrowers who opt to cash in a fixed rate loan early, there is usually a simple 3% penalty payment. Amongst variable rate loans , remortgage and equity release products often carry a 3% penalty for the first five years, but thereafter, early repayment can be penalty free. for mer occupants increase the saleability of numerous homes placed on the market. The Old Manor, once home of playwright Noel Coward, generated a huge amount of interest when it was launched onto the market, resulting in numerous viewings and a successful sale. Even with lesser known for mer residents the effects can be similar -- recent interest in the former home of Doctor Who scriptwriter Te rry Nation, Lynsted Park, has been extremely high. A recent survey conducted on Ancestry.co.uk revealed that m ore than 14,000 of its 200,000 members are currently researching their property lineage, and a further 110,000 plan to do so in the near future. Urban myths about celebrity homes are helping to stoke interest, with many still waiting to be discovered: the whereabouts of David Bowie's childhood home in Bromley remains a mystery. John Lennon is said to have lived in a yet-to-be identified home in Blackpool. Bob Dylan is rumoured to have owned a house at Crouch End in North London -- if true, the potential owner could profit by as much as £32,000 (10% increase) if they can prove he lived there. Michael Fiddes, Head of National Estate Agency at Strutt & Parker, comments: "If your hom e has been lived in by a famous for mer occupant it will inevitably increase the publicity of the property and, therefore, the saleability. "Whilst it is hard to say exactly how much value this would add to a property, it can be anything up to 10 per cent." Tips on researching property lineage 1. Talk to the neighbours -- and especially those who have lived in the area for a while, and investigate any rumours about well-known or celebrity for mer residents. The key information you will need to know is their name and approximately when they lived at the property. 2. Research the name -- for a variety of reasons, many famous people change their names early on in their careers. When searching historical records, you should firstly desk- research the famous person and whether the name you know them by is, in fact, their real name. 3. Search historical records -- the historical collection you will need to explore is deter mined by the approximate dates of the person, or per sons, you are researching. If you think they lived in the second half of the 19th century, you will want to examine the England and Wales Censuses; for late 19th through to the late 20th century, try the British phone books, 1880 to 1984. All are available on www.ancestry.co.uk. 4. Keep an open mind -- not only do people change their nam es, streets and even suburbs do, too. If you hit a brick wall, or if you are sure you have the right infor mation but it is not adding up, visit the Land Registry. This will confirm whether your street's name has ever been changed. The infor mation is available on www.landreg.gov.uk. Fast Facts 8 8492 Fast Facts 8 8491 and are not a constant nuisance. "The launch of this new website offers a useful guide for buyers. We would always advise our clients if a house or village is beneath a busy flight path with planes heading for large regional airports such as Manchester, Bir mingham or East Midlands, but no agent is ever going to voluntarily reveal that a property is below a flight path. While buy-to-let remains strong in all parts of the country, Wales stands out as the latest 'hot spot' for residential property investors, according to Paragon Mortgages' Buy-to-Let Index. Rents are up by 33% over the past quarter and property prices by 18%. Rental yields are also following a positive trend, with Wales the only region of the country where yields exceed 7%.On top of that, this month Wales stands in second position in ter ms of total retur n, generating an average of 25.6% -- compared with an average of 12.9% fo r England and Wales as a whole. John Heron, Managing Director of Paragon Mortgages, says, "Rents are rising strongly in Wales, but so are property values, although to a slightly lesser extent. On the back of that, investors have been enjoying steady rises in rental yields over the past few months, up from 6.3% to 7.1% in one quarter. With a positive economic backdrop underpinning growth in tenant demand, it is not surprising that Wales is the country's top perfor mer in terms of yield, and the only region to generate average rental yields in excess of 7%." An investor who bought a property one year ago will have generated an average total retur n of 25.6% or £34,079 on a property worth £133,297 in March 2006. Mr Heron concludes: "The astute landlord who invested in buy-to-let in Wales this time last year will have achieved almost twice the national average total retur n. While the national picture remains strong, residential property investment looks particularly attractive in Wales. Trends in the local economy are very positive, creating new jobs and causing an influx of workers into the area, which in turn fuels tenant demand". Demand for rented properties seriously outstripped supply and rent levels rose during the three months to the end of May according to the latest quarterly survey of ARLA Member Letting Agents. These results show the shortage of properties and the continuing need for investment in the private rented sector at all levels. Rents rose for the fourth quarter running for each type of property, including detached, semi-detached and ter raced houses and flats. As a re sult of increased demand, void periods have fallen to an average of 24 days. Over two-thirds of all agents in prime central London report rising rent levels. Half of the agents in the rest of the South East say the same and in the rest of the country the proportion of agents reporting rises rose from 33% to 35%. Seven out of ten prime central London agents say there are more tenants than properties available to house them.This is the highest figure seen since the ARLA surveys started six years ago. In the South East, ten per cent more agents report demand is outstripping supply and the proportion in the rest of the country has also risen. Tenants continue to stay in rental properties for an average of well over a year. They remain in the same property for the longest in prime central London at an average of 17.7 months. This compares to an average of 15.2 months for the South East and 14.2 months elsewhere. These figures have shown little change for the past two years. Vintage move For many of us, the prospect of moving home can be very stressful, particularly if there are valuable and fragile objects to be mov ed. So spare a thought for the family who had not only fragile antiques, but also a cellar of wine, that had to be mov ed from Oxford all the way to the South of France. The job was entrusted to Abels Moving Services,which can claim considerable expertise in international moves and handling delicate and valuable items. In what could be described as a coals to Newcastle move, the customer's cherished wine collection had to be moved from Oxford to a vineyard in Lambesc, France. The fine wines were transported in a specialist temperature-controlled vehicle, to maintain their optimum storage temperature of between 10 and 12 degrees centigrade. Other challenges of the job included handling valuable fragile antiques, large mir rors and tapestries which required special packing and a number of large pieces of furniture which needed to be disassembled before removal. As well as the house contents, outside plants, a climbing frame and the contents of a stable and garage were also moved. Additionally, the stable was some distance from the house and needed to be cleared first before forecast rain made it too muddy for access. The mov e, including packing and unpacking, took seven days. www.abels.co.uk Ser ving expats for more than 16 years J In this issue The unthinkable has happened. A run on a British bank -- the UK's fifth largest mortgage lender -- which , on one day, saw savers withdrawing £2bn in little more than 24 hours. As the Bank's share price crashed 39% the nation sat glued to its screens, watching scene after scene of depositors filing into Northern Rock branches across the country, determined not to leave unless they were clutching whatever savings they had placed with the Bank for safe- keeping and good returns. Despite the assurances of the lender of last resort, Britain's Bank of England, that their money was safe and protected by the Financial Services Au thority's deposit protection scheme, few savers were willing to adopt a wait and see approach . This frenzy in the UK mortgage market has come about because of the crisis in the US' sub-prime housing market, where thousands of borrowers on low incomes and with poor credit histories have defaulted on their mortgage payments as US Federal Interest rates have increased. The companies that offered these debts for sale had re-packaged them into 'attractive' packages and sold them on to other banks and hedge funds around the world. As Alan Greeenspan, for mer chairman of the US Federal Reserve, pointed out, the UK borrowers caught between arockanda hard place Investor EXPAT £4.95/ 7.50/US$7.50 October 2007 Bringing advisers and investors together Investor EXPAT Tony Hetherington Our offshore financial investigator exposes another financial scam. Investment banking What the top offshore banks' investment manager s can do for your wealth. Healthcare policies Purchasing a plan that meets all your health needs. Insurance claim disputes When it pays to bare all. First Person The latest research on what's driving the European equity markets. Regulars 10 Offshore funds 12 Offshore savings accounts 21 Property investment 22 Offshore mortgage market Next issue Online banking Non-residence status Offshore finance regulator s US equity market 6 14 18 24 5 www.expatinvestor.com As Britain's fifth largest mor tgage lender puts itself up for sale, UK borrowers fret over the personal cost of borrowing in a market athwart with uncer tainties, as Expat Investor's editorial team reports. For more information from our advertisers or about products featured in Expat Investor enter the Fast Facts number onto the Reader Reply Service coupon on page 20 or go to: expatinvestor.com Fast Facts 88000 www.expatinvestor.com "There are those that you know you should read, and then there's the magazine you will read." To register for Expat Investor digital edition, visit the website at www.expatinvestor.com Ser ving expats for more than 18 years price of risk was falling to unsustainably low levels. It is in this context that we find banks no longer willing to lend to or borrow from each other, as the debt they have taken on is not being repaid. Bor rowers on fixed rate mortgages will fare better during these uncertain times, than those whose loans are on variable rate term, as they can expect their mortgage premiums to remain as they are. Those with rate tracker products where the rate is linked to the Bank of England's base rate, will find that their mortgage can only rise as and when the Bank of England raises rates (regardless of what the lender offers new borrowers); but those with loans on a standard variable rate (SVR) can have their mortgage rate rise at the discretion of the lender. Using the money held in savings accounts, banks will seek to balance their books by borrowing from other institutions. When a bank lends more than it has on its savings book, it will raise funds from the wholesale markets -- such as the banks' money market -- but this cour se of action is a more costly one to the bank. An unusual feature of the present circumstances is that banks are uncoupling their lending terms from the Bank of England's base rate -- still held at 5.75%. The three month Libor (the interbank lending market) is the key variable rate at which banks will lend to one another. Over the Summer, this rate soared. To give some idea of how out of line it had grown, in the same week as Northern Rock's announcement, Libor hit a nine- week high at 6.9% -- that's 1.15 points above the Bank of England's current base rate. It is widely thought that the agreement Norther n Rock struck with the Bank of England, to meet its obligations to its customers, was to borrow money at a rate around 7%. Market analysts are at pains to reassure borrower s that other banks will not necessarily be hit as hard as Northern Rock. This particular bank accrued more than 75% of its funding from the money markets. But Nationwide, for example, only seeks 30% of its funding this way, while Halifax Bank of Scotland goes to the money market for just 33%. However, new bor rowers have discovered that many lender s have already raised their rates. Halifax and Abbey increased their tracker mortgages by between 0.1 and 0.2 percentage points before the announcement came that Northern Rock was in trouble. The latest comment from Alistair Darling, the UK's Chancellor of the Exchequer suggests his department will continue to call for more long- term fixed rate products to come on stream from lenders as these can, and will, bring a greater sense of certainty and security to bor rowers. Property investors must be aware that these events may have a knock- on effect on prices. Even before the run on Northern Rock, the property market had faltered somewhat with the shambolic introduction of HIPs -- home infor mation packs. Predictions are coming in that the country's house price growth will be halved next year as the global financial crisis prompts further rises in mortgage rates. Nationwide's forecast is that house price inflation will slow to around three per cent next year. Up until August of this year, house price grow th was running at just under 10%. Nationwide now suggests that by the year's end, the percentage grow th across twelve months will be more likely 7%, with a continuing slowing down into 2008. As for savers with UK deposit- takers, they are protected by the Financial Services Compensation Scheme. If the deposit-taker goes bust, your savings of up to £35,000 have some protection. Savers are guaranteed to get the first £2,000 back in full, and can expect 90% of the next £33,000 to be returned. OUT NOW! *THE ANNUAL INTEREST RATE QUOTED IS VARIABLE, GROSS AND EFFECTIVE FROM 1ST OCTOBER 2007. THIS RATE IS PAYABLE WHERE NO MORE THA N 3 WITHDRAWALS ARE MADE IN A BONUS YEAR (1ST APRIL -- 31ST MARCH) WITH A RATE OF 6.00% PAYABLE WHERE 4 OR MORE WITHDRAWALS ARE M ADE IN THIS PERIOD. THIS ACCOUNT IS ONLY AVAILABLE ONLINE TO INDIVIDUALS AGED 18 OR OVER AND IS NOT AVAILABLE TO UK RESIDENTS. Maximum balance is £1,000,000. Bradford & Bingley International Limited, International eSavings Unit, PO Box 263, Douglas, Isle of Man IM99 2JJ Br itish Isles. Registered in the Isle of Man No. 052221C. Registered Office: 30 Ridgeway Street, Douglas, Isle of Man, IM1 1TA . With share capital and reserves in excess of £266 million. Copies of our most recently audited accounts are available on request. Bradford & Bingley plc undertakes to discharge the liabilities of Bradford & Bingley International Limited in so far as the latter is unable to discharge them and remains a subsidiary of Bradford & Bingley plc. Under Isle of Man legislation, eligible deposits made with an Isle of Man office of Bradford & Bingley International Limited are covered by the Depositors Compensation Scheme contained in the Banking Business (Compensation of Depositors) Regulations 1991 (as amended). This advertisement does not constitute an invitation to make deposits in any jurisdiction to any person to whom it is unlawful to make such an inv itation or offer in such jurisdiction. Interest rates are variable. Your tax position will depend on your personal circumstanc es and you may wish to seek guidance from your tax adviser. It is the responsibility of the depositor to dec lare any interest received to their relevant tax authority. EU residents who are subject to retention tax by way of the EU Savings Tax Directive will need to consider the effect of the retention tax that will be applied to their accounts. Licensed by the Isle of Man Financial Supervision Commission to conduct Banking Business. %* GROSS P.A. 6.50 eSaver Internet Savings Account . Minimum balance £1 . No hassles . Helps you save . Manage from home 24/7 Available now at www.bbi.co.im/esaver To register for the digital edition, go to www.expatinvestor.com