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On the lookout for the best offshore interest rates?

If you are looking for a savings account which will give you a decent return on your money, you might be considering an offshore option. These accounts are normally operated from Guernsey, Jersey, the Isle of Man and Ireland.

In order to get the best offshore interest rates possible, savers might want to look at fixed rate accounts as these usually pay a higher rate than easy access accounts.

Some savers prefer offshore accounts because interest is paid gross, giving you a chance to grow your savings before you have to pay the tax on them.

Historically, they have also tended to pay a higher rate of interest than UK based options. But even though British banks and building societies can offer similar rates in some instances, if you are thinking of living or working overseas, an offshore account could come in handy.

Here are three of the best offshore bank account interest rates we came across on our travels.

  • Lloyds TSB International is offering a five year offshore fixed term bond which pays four per cent interest. Savers must deposit a minimum of £10,000, while the upper limit is £5 million. You have to be at least 18 years old to open an account and can be either a UK or non-UK resident.
  • The Bank of Ireland’s High Interest Anniversary Account Issue 1 is a one year fixed term bond based in the Isle of Man, paying 3.5 per cent on amounts from £25,000 to £1 million for savers aged 18 and above.
  • The Leeds Building Society has a Gibraltar based offshore five year fixed rate bond, Issue 90, which pays four per cent interest on balances of £100 up to £99,999 and 4.25 per cent on amounts from £100,000 to £1 million. This account is designed for UK passport holders living in Spain.

To make sure your savings are protected it’s always advisable to check whether the offshore bank is covered by the Financial Services Compensation Scheme.

 

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