# Best Worldwide Rates For Regular Savings?



## TheJackal (7 Jul 2008)

I know Irish savings rates have been quite good lately (7% +) but surely there are better rates worldwide? With online banking one could easily transfer money to any bank around the world. 

So does anyone know of banks outside Ireland with much better rates? I tried googling a list of the best worldwide but no joy. Is there one out there or should we use this thread to gather a list of all the top rates members have seen. 

For instance, I recently heard New zealand has great rates but not what NZ bank(s)...


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## ClubMan (7 Jul 2008)

What about the small matter of currency fluctuation risks? And the possibility that deposit interest from offshore accounts may be assessable for income tax rather than just _DIRT_?


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## eileen alana (7 Jul 2008)

Yeah, if you feeling adventurous, try this recent thread on Turkey


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## TheJackal (7 Jul 2008)

ClubMan said:


> What about the small matter of currency fluctuation risks? And the possibility that deposit interest from offshore accounts may be assessable for income tax rather than just _DIRT_?


 
I thought about currency fluctuations but the euro is pretty strong against most currencies. It would depend on which currency used by the bank you chose.

Not sure about the possible income tax liability? Perhaps someone could
clarify this?


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## WaterSprite (7 Jul 2008)

Is it that easy to open an account in another country?  Don't you need proof of address and suchlike?

Sprite


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## TheJackal (7 Jul 2008)

WaterSprite said:


> Is it that easy to open an account in another country? Don't you need proof of address and suchlike?
> 
> Sprite


 
Well for Rabobank (who only offer online banking in Ireland) you just apply online, fill in some documentation and post it off to them! No need to do it in person.


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## WaterSprite (7 Jul 2008)

When you apply online for Rabo, you have to send in proof of identity and address with your documentation if you are a new customer - no?  You do for Northern Rock. Would be stunned if the same wasn't true for Rabo.

Sprite


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## TheJackal (8 Jul 2008)

WaterSprite said:


> When you apply online for Rabo, you have to send in proof of identity and address with your documentation if you are a new customer - no? You do for Northern Rock. Would be stunned if the same wasn't true for Rabo.
> 
> Sprite


 
You're most likely correct but that's easy to do! Takes a few days; surely not a reason to stop you from looking for the best worldwide deal!


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## ClubMan (8 Jul 2008)

TheJackal said:


> Well for Rabobank (who only offer online banking in Ireland) you just apply online, fill in some documentation and post it off to them! No need to do it in person.


Where? Are you sure that no terms & conditions apply that might restrict the availability of such accounts?


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## TheJackal (8 Jul 2008)

Why would banks restrict foreign customers from lodging savings with them?! The main issues are:

1 - How high the rate offered is
2 - Are savings made subject to taxes other than DIRT in Ireland?
3 - If saving in a currency other than Euro, are savings likely to be reduced due to fluctuations?


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## WaterSprite (8 Jul 2008)

The point about proof of address is that you have to be resident in the country you are opening an account.  For e.g. you can't open an account in AIB in Ireland if you live in Germany.  Don't know about other countries though but would imagine that you need a residential address in the country in which you are seeking to open a bank account.  One "exception" I know of is that you can open a US$ (and presumably other currencies) account here but you will only get US interest rates, which are significantly lower than here.  Never heard of e.g. opening a NZ$ account with a bank here, although I realise this is prob not what you are hoping to do.

Sprite


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## WaterSprite (8 Jul 2008)

Overlapped on your last post - the banks insist on you being resident here for anti-money-laundering requirements.  I'd be really amazed (and am prepared to be amazed!) if you could open an account in a foreign country for a normal savings account without being resident there.

Sprite


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## TheJackal (8 Jul 2008)

WaterSprite said:


> The point about proof of address is that you have to be resident in the country you are opening an account. For e.g. you can't open an account in AIB in Ireland if you live in Germany. Don't know about other countries though but would imagine that you need a residential address in the country in which you are seeking to open a bank account. One "exception" I know of is that you can open a US$ (and presumably other currencies) account here but you will only get US interest rates, which are significantly lower than here. Never heard of e.g. opening a NZ$ account with a bank here, although I realise this is prob not what you are hoping to do.
> 
> Sprite


 
I see your point. Bloody stupid that you can't at least open an a/c anywhere in the EU just by being an Irish resident!

I'm pretty sure you can set up sterling accounts aswell so that would open up the UK market (though the issue of currency fluctuations arises & their rates are currently around 6%)


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## Sunny (8 Jul 2008)

Have you thought about Zimbabwe. I think overnight rates are decent at around the 8500% mark.


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## TheJackal (8 Jul 2008)

WaterSprite said:


> the banks insist on you being resident here for anti-money-laundering requirements. I'd be really amazed (and am prepared to be amazed!) if you could open an account in a foreign country for a normal savings account without being resident there.
> 
> Sprite


 
Thought more about this last night. There are a lot of countries which let you open an account even if you don't live there. For example, my parents have a Spanish account. Also, see this link for Switzerland 
	
	



```
http://www.swissbanking.org/en/home/faq-kontoeroeffnung.htm
```
. Basically says that you can open an account no matter where you live but must open it in person or have your ID (eg: passport) verified by a 3rd party the bank trusts


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## ClubMan (8 Jul 2008)

Whatever about whether or not you can open a foreign or foreign currency denominated bank account do you accept the cons involved in chasing higher interest rates in foreign currency denominated bank accounts as outlined above?


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## TheJackal (8 Jul 2008)

ClubMan said:


> Whatever about whether or not you can open a foreign or foreign currency denominated bank account do you accept the cons involved in chasing higher interest rates in foreign currency denominated bank accounts as outlined above?


 
There are always going to be cons! Hopefully you could find a bank in the euro zone to avoid the whole currency fluctuation issue but it's not the end of the world if not.

But do you accept my premise that there must be higher rates out there, and depending on the rate, how much you can lodge per yr, currency used, etc, such a foreign account would be worth investing in?

I'm surprised there isn't a list of great worldwide rates anywhere...


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## Oracle (8 Jul 2008)

Surprised nobody has mentioned Halifax UK, I seen a TV ad for their 10% Regular Savings account, that has to be near the top. Max is just £500 though: http://www.halifax.co.uk/home/home.asp


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## lukegriffen (8 Jul 2008)

Anglo Irish have sterling accounts at 6.28% fixed 1 year
[broken link removed]


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## ClubMan (8 Jul 2008)

TheJackal said:


> But do you accept my premise that there must be higher rates out there, and depending on the rate, how much you can lodge per yr, currency used, etc, such a foreign account would be worth investing in?


I suspect that the cons and risks will outweigh the pros in most or all cases. Have you checked out the tax issues?


> I'm surprised there isn't a list of great worldwide rates anywhere...


Feel free to collate and maintain such a list yourself and we can stick it up as a key post.


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## soy (9 Jul 2008)

TheJackal said:


> ! Hopefully you could find a bank in the euro zone to avoid the whole currency fluctuation issue ...



????? all euro denominated bank accounts are based off the ECB interest rate.
You are talking about investing in foreign currency, there is no way to get avoid dealing with currency fluctuations.


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## Sunny (9 Jul 2008)

TheJackal said:


> There are always going to be cons! Hopefully you could find a bank in the euro zone to avoid the whole currency fluctuation issue but it's not the end of the world if not.
> 
> But do you accept my premise that there must be higher rates out there, and depending on the rate, how much you can lodge per yr, currency used, etc, such a foreign account would be worth investing in?
> 
> I'm surprised there isn't a list of great worldwide rates anywhere...


 
Do you know why Countries have higher rates or do you think they are just being more generous than the Euro banks? Be very careful about following this strategy even without the currency concerns. You could put your money in an Icelandic bank and earn around 15%. Sounds great until you realise that financial markets are shorting Iceland and betting that it won't survive because the banks and Country itself are so levered. The carry trade is only suitable for experienced investors who have a handle on FX and economic factors. A personal investor who ploughs their savings into a carry trade is more then likely going to get burnt.


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## TheJackal (9 Jul 2008)

soy said:


> ????? all euro denominated bank accounts are based off the ECB interest rate.


 
Yes, euro banks use ECB (4.25%) but many also offer an extra rate on top of this. Eg: Irish Nationwide is ECB + 3.35%

So if you know what banks in eurozone offer & tax(es) on interest, you can compare this to Irish banks


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## ClubMan (9 Jul 2008)

Do you have a draft list yet?


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## budapest (9 Jul 2008)

WaterSprite said:


> I'd be really amazed (and am prepared to be amazed!) if you could open an account in a foreign country for a normal savings account without being resident there.



In my experience, it's not any more difficult to open an account as a 'non-resident' in any country in Europe than a regular savings account in Ireland.  As long as it's mentioned in your yearly tax return in Ireland (and income tax paid on any deposit interest as mentioned before), there shouldn't be a problem.  I had some HUF on deposit for years at 10% p.a.  HU has the second highest base rate in the EU at 8.5%.  Romania has the highest base rate as far as I'm aware at 9%?  Non-EU countries such as Iceland, mentioned above, have higher rates still but increased risks.


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## ClubMan (9 Jul 2008)

budapest said:


> As long as it's mentioned in your yearly tax return in Ireland (and income tax paid on any deposit interest as mentioned before), there shouldn't be a problem.


So it is income tax (e.g. at 41%) and not _DIRT _(at 20%) that applies to such interest? What about _PRSI_? So this presumably means that the rate on such an account would need to be at least 0.21% higher than at home before you are making anything?


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## TheJackal (9 Jul 2008)

ClubMan said:


> I suspect that the cons and risks will outweigh the pros in most or all cases. Have you checked out the tax issues?
> 
> Feel free to collate and maintain such a list yourself and we can stick it up as a key post.


 
I suspect tax will be the major issue, especially in Eurozone.

Going to look at eurozone banks first & get a quick view.

Also looked at New Zealand yesterday. Many banks offer 8.5% & no max limit per year.

Higher profits can be made compared to Irish rates but you would need to invest a lot per year. Ireland's tax agreement with NZ says you pay Irish Income Tax (41% at higher rate) + a max of 10% of gross interest made in NZ. So that's 51%, compared to 20% DIRT in Ireland, Therefore, you'd need to be offered rates 31% higher (51 less 20) in NZ to make it worth your while. Not likely!

Edit: See this link regarding double taxation agreements in place between Ireland & other countries

[broken link removed]


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## ClubMan (9 Jul 2008)

TheJackal said:


> Could someone in the know clarify double taxation agreements?


[broken link removed]


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## budapest (9 Jul 2008)

ClubMan said:


> So it is income tax (e.g. at 41%) and not _DIRT _(at 20%) that applies to such interest? What about _PRSI_? So this presumably means that the rate on such an account would need to be at least 0.21% higher than at home before you are making anything?



Correct.  It's necessary to pay income tax rather than DIRT.  As you say too, PRSI should also be paid on the interest.

In most cases, it doesn't make much sense for Irish people to save money in non-resident accounts, particularly at the moment, when such high deposit interest rates are available at home and when taking into account the risk of currency exchange rates going the wrong way.


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## TheJackal (9 Jul 2008)

ClubMan said:


> [broken link removed]


 
Cross posted the same link. Sorry!


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