Offshore banking: any recommendations?

[wonderlust]

As I may be moving to Thailand for a long term stay, it seems to me the best banking solution is an offshore account in the Isle of Man or some other regulated jurisdiction. I know that the big banks (e.g. HSBC) have offshore accounts on offer there, but they seem a bit of a rip-off because they charge around 2.75% currency conversion fee and £1-2 for each cash withdrawal or purchase. What I'm looking for is an offshore GBP account with a debit card and no rip-off fees for withdrawing my own money. Any recommendations?

[Dexi]

Why not leave the cash in the offshore account untouched and transfer the amount you need instant access to into a current ac. such as the Nationwide which provides a debit card to get your money out with no charge while in LOS.i`m thinking along similar lines but still a bit woried about possible bank insolvency on o/s accounts...at least in the UK. one is covered by the FSA`s comp. scheme for losses up to 36 (?) k...I heard a story about a couple who retired to the Isle of Man and put their life savings in a bank there only to lose the lot when the bank folded...

[changnoi]

Nationwide International (subsidiary of Nationwide Building Society) are offering a base rate tracker @ 4.7% right now.

 

http://www.nationwideinternational.com/interestrates/sterling.htm

 

Safer than some:

 

' In addition to this statutory protection, Nationwide Building Society guarantees to discharge any liabilities of the company as its wholly-owned subsidiary in so far as the company is unable to discharge those liabilities out of its own assets.'

[Dexi]

That guarantee looks quite reassuring....interesting that the base rate tracker fund gives a better return than even the 3 yr.bond....also,noticed a statement that some individuals may have interest deducted as part of a new EU. directive ( clamp down on tax evasion maybe ).These o/s accounts used to be tax free ,but is tax now being deducted at source just like domestic UK. banks etc....I hope not.

[wonderlust]

A Nationwide current a/c combined with a Nationwide offshore a/c does seem a good solution BUT you need to be a UK resident to maintain a current account so I'm concerned my account may be suspended once they realise I no longer have a UK address. Also does anyone know if Nationwide Internet banking services can be accessed from outside the UK because my current bank, Halifax, blocks Internet banking from outside the UK.

 

Another option would be to open a Euro account with a big name European bank, who typically don't charge the extortionate 2.75% + £1.50 to access your money.

[Guest]

This is my problem at the moment. I never owned a house in the U.K and only rented. I moved around the country from 25-30 a fair amount and stayed 6 months here, a year there, 10 months here etc etc. I have no real fixed address in the U.K. My business went kaput in 2003 and it hit my business bank account fairly hard. So i have two problems....

 

1, i dont have a U.K fixed address.

2, if i did somehow manage to open an account back in the U.K with no I.D (i even lost my driving license in LOS) and no fixed abode, i would worry what the hell the powers that be may do regarding my bankruptcy.

 

If i was back in the U.K, I would deal with it all. But I have no plans to go back in the near future, have been here nearly 3 years and feel safe for another 2-3 at least. Hopefully, i will never have to go back if my work plans come off.

 

It would be so much easier for me to have a U.K account. I currently recieve my salary monthly and just dump it in my Thai account. I usualy just blow my salary every month however towards the end of this year I should be able to put away a small but healthy lunmp sum, and worry about having all my money in baht. A repeat of 97 would not bother me if i had my money in stirling.... but baht is a worry. And i miss having a debit card!

[Mekong]

I have offshore account with Singer & Friedlander in Isle of Man Singers

 

Internet Banking including International Transfers, e-cheques and so on.

Visa Debit Card that I have used in many countries (SE Asia, China, Middle East, USA)

Choice of Multi Market Currency Accounts, I just have GBP, EUR and USD, I think you can also have AUS, YEN, and a couple of others

 

To open offshore account you do need to have permanent address in your non-uk country and proof of income (copy of employment contract) and all documents need to be notorised by a lawyer. With the money laundering laws even stricter now post 9/11, it is a drawn out process to open an account but well worth the effort.

 

I can personaly recommend this bank, and so can the people who reccomended it to me.

[khwaimaisabai]

Hi mekong,

Just a couple of points based on my experience.

I have an account in Isle of Man with Lloyds TSB. I have had no problems - good service. I use internet banking with them a lot - rarely use a cheque.

You can have a domestic UK bank account with an overseas address - I have anyhow.

Also, the EU tax issue is for residents of EU where Isle of man and Channel Islands accounts will have some tax deducted from interest payments. There is more information here:

 

http://www.lloydstsb-offshore.com/EU+Savings+Tax+Directive.htm

 

Khwai

[wonderlust]

Singer and Friedlander seemed like a good option until I read this in the Schedule of Charges:

 

"Foreign exchange rates are those set by the bank."

 

My guess is they're charging the usual 2.75% foreign transaction fee (you wouldn't see that on the statement, it would just be a bad exchange rate). I know for a fact Lloyds TSB does this. Nationwide on the other hand guarantee that the exchange rate you get is the Interbank rate. I'll ask them whether I could keep a current account open even if I moved abroad.

 

Batty - to open an account in the UK nowadays you need a copy of your passport and original proof of UK address. I think you should be able to open an offshore account though, if you have a British passport and proof of address in Thailand. The Isle of Man is outside the jurisdiction so it's unlikely your creditors or anyone is going to even find you if you open an Isle of Man account.

[Mekong]

Wonderlust,

 

I have just checked my records, unfortunatley since I transfer the same amount each time as and when I need money here I cant say if the fee is a fixed charge or a percentage.

 

FYI on STG 3,500 the charge was STG 30, which is 0.8571428% so I think its a fixed fee rather than a percentage charge.

 

As for actual exchange rate, when you make a transfer you set the date to 2 banking days ahead and get the exchange rate of the day. Not being into major international banking I just watch the rates on xe.com amongst others and each time I have transfered I have got a slightly better rate than shown on them sites.

 

It was a friend of mine who put me onto this bank, he has been involved in International finance all his career in 3 different continents and he now runs his own company in Bangkok. He did not "sell" this to me I happened to make an appointment and go to his offices and look at various options. The bottom line is he uses this bank for his corporate accounts as well as his personal ones. I thought there is no better reccomendation than that.