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 : September 2008
ISLE OF MAN Depositor compensation scheme The Isle of Man has a depositors’ compensation scheme (DCS). The DCS partially compensates savers if on deposits of £2,500 or more. The interest earned is paid out on a quarterly basis. Zurich Bank International’s range of accounts also include a 1 year fixed rate bond (currently paying 6.05%); a 1 year fixed rate euro bond (paying 5%); two euro- denominated savings accounts, the Zurich Euro Reward account and the Call Account; a US dollar Call Account; and a money market account which require a minimum balance of £50,000. “Zurich Bank International’s product range has expanded over the last few years. For sterling savers there’s the Zurich Reward Account which permits unlimited withdrawals on its no-notice term- the first 10 of these are free, thereafter each withdrawal will cost you £2. Interest on this account is paid annually.” One of Zurich Bank International’s latest offerings is a 1 year fixed rate bond paying 6.70%. This limited issue product has a minimum balance of £10,000 and is aimed at those savers who wish to receive a guaranteed rate of interest over 12 months. Graham Sheward, Managing Director of Zurich Bank International, says, “We are Continued on page 8 a bank in which you have deposited money fails. To pay compensation, a DCS fund is created (when needed) from contributions made by other banks in the Isle of Man. Key features of this cover include: ? The DCS compensates people who have money in current and deposit accounts in the Isle of Man with 75% of up to £20,000 of net deposits per depositor per bank, if the bank fails. This means maximum compensation payable is £15,000 per depositor – this amount would be paid to someone with £20,000 or more. ? Net deposits: Loans may be netted off against deposits you have with the same bank. For example, if you have a total of £32,000 in current and deposit accounts, but a mortgage of £18,000, your net deposits are £14,000. The DCS would pay you 75%of £14,000 in compensation, that is £10,500. If there are sufficient funds on liquidation of the failed bank, the remaining £3,500 would be paid from the liquidation proceeds. ? The DCS covers individuals, companies and trusts who have bank accounts in the Isle of Man, whichever country they are resident in. ? Payment is per depositor, not per account, therefore each person who shares a joint account can receive compensation, but if you have more than one account you won’t receive more than one compensation payment. ? All banks in the Isle of Man that are licensed to take deposits are members of the DCS. Some banks, which do not take deposits, are not members of the DCS. Your deposits with each banking licence-holder (that is, bank that is licensed in the Isle of Man) are covered separately, even if they are part of the same group. A list of all the banks which are licensed in the Isle of Man is on the FSC’s website at www.fsc.gov.im Top 5 Tracker The savings account that’s a consistently high performer Annual rate no more than 0.25% below the average of the top five offshore no-notice* accounts until 31 December 2009 Three no-notice, penalty-free withdrawals each calendar year Further access subject to a 30-day interest penalty Monthly interest option available with rates set at 0.30% gross p.a. below annual rates Minimum balance £25,000 Wouldn’t you like to know your account will always pay one of the better rates available for its type? That’s exactly what you get with our new Top 5 Tracker. This account guarantees to pay a rate no more than 0.25% below the average of the top five offshore no-notice accounts – as reported by the UK’s leading independent financial comparison website Moneyfacts.co.uk – until 31 December 2009. The rate will be updated each month to take account of any changes without you having to do a thing – and there’s also the flexibility to make withdrawals and deposits whenever you want. For a high-performing account with a consistently good return, call today for more information on our Top 5 Tracker. Tel+44 1624 681100 Fax+44 1624 681105 www.britanniainternational.com BEST INTERNATIONAL BANK PRODUCT BEST OFFSHORE STRUCTURED PRODUCT PROVIDER *The no-notice category we use includes variable rate easy access accounts from offshore providers but excludes fixed rate accounts, regular saver accounts, internet accounts and accounts where there is restricted eligibility, for example, accounts which require you to open another account to qualify. Maximum balance £1m. Sterling deposits only. Full terms and conditions are included in the product literature available on request. A.E.R. illustrates what the rate would be if paid and added each year, rounded to two decimal places. The interest rate will be reviewed monthly and changes made from the first day of the following month. Rates shown correct at time of print. Interest is variable and paid annually each 1 January or monthly at the beginning of each month. Interest is paid gross or may be subject to a retention tax depending on your country of residence for tax purposes. Your tax position will depend on your personal circumstances and you may wish to seek guidance from your tax adviser. It is the depositor’s responsibility to declare all interest earned to the appropriate tax authority. This is not an invitation to make deposits in any jurisdiction to any person to whom it is unlawful to make such an invitation. Britannia International Limited is a wholly owned subsidiary of Britannia Building Society. Registered office: Britannia House, Athol Street, Douglas, Isle of Man IM99 1SD, British Isles. Registered Company No. 50583. With paid up share capital and reserves in excess of £52.9m as at 31/12/2007. Deposits made with Britannia International are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000. However, eligible deposits made with an Isle of Man office of Britannia International are covered by the Isle of Man Depositors’ Compensation Scheme contained in the Isle of Man Banking Business (Compensation of Depositors) Regulations 1991 (as amended). For your further protection Britannia Building Society has given a legally binding undertaking to discharge all liabilities of Britannia International should Britannia International be unable to do so whilst it remains a subsidiary of the Society. Complaints we cannot settle can be referred to the Financial Services Ombudsman Scheme for the Isle of Man. Licensed by the Isle of Man Financial Supervision Commission for Banking and Investment Business. EXPIN09/08 September 2008 ? EXPAT INVESTOR 7 Fast Facts 77003 6.35% Annual gross/A.E.R.
July August 2008