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Expat Investor : December 2007
OFFSHORE SAVINGS December 2007 EXPAT INVESTOR 7 Fast Facts 10004 * Online Application Process is defined for the purpose of this advertisement as a process enabling the customer to contract electronically and submit an application online without having to print, sign and post a paper application form. **On balances of £1+. Includes 0.50% premium for making no more than 3 withdrawals in 1 April - 31 March. ***Gross rate 5.40% PA, minimum balance £5,000. ****Gross rate 5.60% PA, paid monthly, minimum balance £10,000, Premier Customers only. Standard rate is 5.32% gross PA, paid monthly (AER 5.45%). †Online application process only available to existing HSBC Bank International customers. eSaver Offshore, Alliance & Leicester International: Full terms and conditions available on our website. Account must be applied for and operated online. Email address is compulsory. Minimum opening deposit £1,000. Account must be opened with money that is not already deposited with the bank. Maximum balance £1,000,000. Withdrawals available without notice or penalty. Minimum withdrawal £1,000. Withdrawals may be made free to a UK bank account by BACS payment (up to 5 working days). Charges apply for other types of withdrawal. No cash or cheques. Interest paid annually in arrears on 31 March. Interest rate is 6.51% gross p.a./AER Variable. Rate effective from 9 October 2007. Gross is before any deductions. AER - Annual Equivalent Rate illustrates the interest rate if interest was paid and compounded each year. Interest may be paid free from tax offshore depending on your country of residence for tax purposes. EU Savings Tax Directive rules apply to EU resident customers. Deposits made with an Isle of Man office of Alliance & Leicester International Limited are covered by the Isle of Man Depositors' Compensation Scheme contained in the Banking Business (Compensation of Depositors) Regulations 1991. Alliance & Leicester is the registered trade mark of Alliance & Leicester plc. Alliance & Leicester International Limited, PO Box 226, 19/21 Prospect Hill, Douglas, Isle of Man, IM99 1RY, British Isles. Incorporated in the Isle of Man (No. 81918C). Licensed by the Isle of Man Financial Supervision Commission for banking business. Apply online today! Click www.alil.co.im/expat EXPAT INVESTOR ESAVER DECEMBER 07 Offshore Savings Online Compare our eSaver Offshore Alliance & Leicester International eSaver Offshore Bradford & Bingley International eSaver Northern Rock Guernsey Offshore Tracker Online HSBC Bank International Online Saver Source: Providers' websites 23 November 2007 Online Application Process* Online Rate Interest Rate (AER) Variable Unlimited Penalty Free Withdrawals 6.50 5.25 5.75 † % % % %**** *** ** 6.51 Continued on page 8 choosing a product that could leave them financially disadvantaged." One of the principal reasons Expat Investor publishes figures from the offshore deposit takers based in the Isle of Man, Guernsey and Jersey is the fact that we have MoneyFacts as our reliable source of comparative data for the interest rates paid on accounts spreading across the three main currencies, sterling, euro and US dollars. When we turn our attention to what's being offered to savers now the full picture reveals the reasons savers have to be cheerful. And it's offshore savers in particular who end the year with the bigger grin (thanks to an appreciably larger rate) than their onshore peers. As Rachel Thrussell, Head of Savings at MoneyFacts points out, "In the wake of the onshore savings rate war, first in the fixed rate market and subsequently with variable rate products, the offshore market has stolen the march... offering rates to win the battle hands down." MoneyFacts' data highlights the more recent changes and some of the headline grabbing deals now on offer. A 6.55% rate readily available offshore cannot be found on onshore accounts, unless you are prepared to take one of the few deals specifically designed for child benefits or a house deposit, for example. This rate is particularly impressive, says MoneyFacts, "when looking at the virtually 'strings free' account from Kaupthing Singer & Friedlander (IOM). The Platinum Offshore Access account does require a minimum deposit of £25,000 to qualify for this higher rate, and minimum withdrawals are limited to £1,000, but is otherwise restriction free -- a good, simple, hard working account." At the same time, Alliance & Leicester International offers 6.51% on its eSaver Offshore Issue 1 Account for a £1,000 balance; Bradford & Bingley International offers 6.50% on its eSaver Account for a £1,000 balances; Irish Nationwide (IOM) offers 6.30% on its Instant Quarterly for a £25,000 balance; and Scarborough Channel Islands offers 6.55% on its Offshore Flexi-120 Account for a £5,000 balance. As every Expat Investor reader knows by now, the principal reason for comparing accounts is to check for consistency. You are looking for those names which feature regularly in the best buy savings accounts tables. It is worth noting that many of the names appearing in our tables at the beginning of the year are the Money Tool from Bradford & Bingley International "When we turn our attention to what's being offered to savers now the full picture reveals the reasons savers have to be cheerful. " The Isle of Man is not known as the "Celtic tiger cub" for nothing. From a standing start a quarter of a century ago, this dynamic island in the middle of the Irish Sea has grown to become a premier international offshore jurisdiction, and continues to enjoy a remarkable growth rate of 7% (three times the EU average). Its success is matched by that of Bradford & Bingley International (BBI), a wholly owned subsidiary of the UK plc and one of the largest offshore savings banks in the Isle of Man. The firm serves many thousands of customers in more than 125 countries around the world and holds deposits exceeding £3 billion sterling. A comprehensive product range is designed to meet every need, but the canniest investors are choosing eSaver -- a highly convenient internet savings account offering a return of 6.50%. With that level of interest, you might be expecting significant restrictions on eligibility and a minimum initial investment in four or even five figures. Not so. eSaver is available to customers in the Isle of Man, Channel Islands, European Union and around the world, and an account may be opened with just one pound. What's more, a regular savings option will help you make sure your excess income really works for you. Of course, online accounts are hard to beat for their convenience, and eSaver allows investors to view and manage their account from any internet connection, anywhere -- providing 24/7 access and control. No notice is required for withdrawals and there are no charges or penalties levied (provided no more than three withdrawals are made per annum). The account is easy to set up, making it the ideal option for busy people. eSaver doesn't just offer a high rate, but guarantees that the interest rate will remain above the Bank of England base rate until at least the end of 2008. Finally, being an offshore account, eSaver offers payment of interest gross, without any local taxes applied (although European Union residents may be subject to withholding tax under the EU Savings Tax Directive).
January February 2008