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Why it Pays Expats to Regularly Review Their Offshore Savings

Whilst the UK base rate languishes at a miserable 0.5%, the world’s stock markets wildly flail about and can wipe out an investor’s capital in an afternoon.  As our recent article about catastrophe investing highlighted, no one is immune to the current global financial turmoil, least of all expatriates looking for a safe haven for their saved wealth.

Whilst onshore Britons can shelter their wealth in cash ISAs for example, and offset historically horrendous interest rates with a small tax break perhaps, expat savers looking for a worthwhile place to stash their cash are not so fortunate.  ISAs and pensions disallow non-residents any form of tax break, and all too often the banks and financial institutions in their new home nation offer them no secure shelter from the fiscal storm…

And with interest rates the world over being negatively impacted, expatriate savers are really struggling to ensure their cash deposits are placed in accounts that will even just offset inflation.  This bleak picture of reality is why it really does pay expats to regularly review their offshore savings, because every once in a while a bank or a building society comes along and offers a better short-term headline rate…

Now, regular readers will know that we’re not so hot on chasing headline rates of interest at Expatra – because going it alone can mean that many savers tie in to an attractive scheme, only to forget about the cut off date for the bonus period.  This means they earn a decent rate of interest for 6 months or a year, and then leave their wealth lying in an account that’s paying them next to nothing.

However, the key herein is in NOT going it alone!  When it comes to money matters, and getting it right on an individual basis, we are guilty of forever harping on about seeking professional financial advice.  But we do it for a reason – and it’s not because we’re financial advisers!  Basically, when it comes to ensuring you’re alwaysgetting the best rate of return on your savings or investments, it literally pays to have someone on your side helping you out.

If you utilise the services of an adviser, it is in their best interests (and yours!) to keep you abreast of better offerings and deals as and when they come up, or as and when they become appropriate for your personal financial situation.  This means that you don’t have to set a reminder in your iPhone of Blackberry to recheck that your savings are getting the best rate in 6 months or a year from now, your personal financial adviser will check for you.

As long as you commit to having a regular financial review, your adviser will ensure that whatever products or solutions previously recommended for the safe investment of your money are still: –

a) Appropriate
b) The highest potential returning available in the offshore financial marketplace

You cannot put a price on the value of this support – what’s more, interest rate offerings, even on the most basic savings accounts, change all the time.  Most recently Nationwide International has launched a whole range of brand new accounts, it has reissued old favourites, and it has adjusted upwards its interest rates on a number of classic accounts.  Alliance and Leicester International has also positively adjusted its fixed savings rates by up to 0.5 of a point.

Did you know this?
Could you benefit from this?
Would your savings be better off with either institution?

If you use an independent financial adviser who has knowledge of the offshore and international financial marketplace, and you commit to regular (biannual) financial reviews, you need never worry that your savings are not earning you’re the highest potential returns, even in this negative financial climate.

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