Do You Trust Your High Street Bank?
With the likes of Goldman Sachs and National Savings & Investments (NS&I) cutting the interest rates on savings accounts, consumers are beginning to lose trust in the value of high street banking in the UK.
“Today, the biggest threat to savings isn’t market risk. It’s the fact that a majority of Britons feel that banks have not rebuilt public trust despite over ten years of restructuring since the 2008 financial crisis. The unhappiness of customers with their high street banks is becoming cliché,” says Granville Turner, Director at Company Formation Specialists, Turner Little.
“With mobile banking set to be more popular than visiting a high street bank by 2021, it’s no wonder that consumers are starting to look further afield when it comes to managing their finances. If an offshore investment makes you a better return, and doesn’t increase or even reduces your risk, then it makes perfect sense to invest. If the same investment also saves you money in taxes or allows you to take advantage of foreign economic conditions, then again, why would you not consider it?” adds Granville.
Offshore accounts are often multi-currency accounts, and can be opened by anyone over the age of 18. Whilst it’s often necessary to invest at least £500 or, in exceptional cases, £10,000 to open an offshore savings account, there are many that require a minimum deposit of just £1. A common perception is that some of the most common offshore accounts available to UK-based savers are in the Channel Islands or the Isle of Man, but this is not the case, and anyone considering an offshore account might be well advised to look further afield.
Offshore accounts are often available with both variable and fixed interest rates, and offer easy access to your funds. Whilst there are a number of strict checks in place to prevent offshore accounts falling foul of criminals who want to evade tax, opening an account is easier then it seems, providing you meet the minimum requirements set by the bank you choose.
“Whilst offshore accounts may not be for everyone, this rapid rate of technological change is set to continue over the coming decade, as people embrace the ever-widening number of ways to manage their finances, depending on their needs and lifestyle,” says Granville.