1) Protect against inflation - The real return is the actual profit made on an investment after taking into account the effects of inflation - the rise in prices for goods and services. Advisers also urge all savers to include the impact of tax when estimating potential profit to get a true picture of potential returns.
2) Protect against bankruptcy - As more and more financial institutions merge with each other, check that your savings are not spread amongst deposit-takes with the same ultimate owner. If so, only a portion of your overall savings nest-egg may qualify for compensation.
3) Protect against lack of compensation rights - One of the most valuable lessons learned from the collapse of the two Icelandic banks in offshore Britain (Landsbanki Guernsey and Kaupthing Singer & Friedlander Isle of Man) is to ensure you always interrogate a jurisdiction's financial compensation scheme before placing a penny of your hard-earned savings with any of its financial institutions.
4) Protect against ID fraud - It is imperative you comply with identity protection procedures initiated by your deposit-taker. Never reveal your passwords and security codes to anyone. If you manage your savings accounts online, never leave a computer screen bearing the details. Do not fall victim to a scam by re-registering in response to an email requesting all your personal details. Real financial institutions would never ask in this way.
5) Protect against adverse terms and conditions - Always read the small print of any terms and conditions when opening an account. Look out for penalties in the form of loss of interest against withdrawals made outside the notice terms and ways in which you could miss out on introductory, or loyalty, bonuses.
6) Profit by shopping around – it pays to research the rates paid by deposit-takers over the long term. Don’t be taken in by a new rate offer that is well above the rest. Those tempting percentages could be slashed once savers have been caught in the net.
7) Profit by making the most of market competition – Today’s market is more competitive than ever – financial companies want savers more than they do borrowers. Pick a handful of consistent top league payers and do your research to find out which one really wants to reward your customer loyalty.
8) Profit by tracking market movements – Rates paid are still pegged to a currency’s base rate set by Central Banks. If you are saving in sterling, euros and US dollars, make sure you stay abreast of these currencies’ base rates to gauge the rate offers on your accounts.
9) Profit by locking away for longer – Current best paying accounts are those that lock savers into a fixed term. Work out how long you can do without access to your savings and match that period with a provider’s current best fixed term offer. Best payers on fixed term sterling accounts topping MoneyFacts’ league tables are: Anglo Irish Bank (International), Bank of Scotland International, Irish Permanent International and Northern Rock (Guernsey).
10) Profit by saving regularly – Get the best from regular savings with products that encourage and reward such good habits. Check out these regular saver offshore accounts: Abbey International, Britannia International, Halifax International, and Norwich & Peterborough (Gibraltar).
Compare offshore savings account with ExpatFinder.com
Hannah Beecham
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