Put Irish money in UK A/c for greater interest?

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PetPal

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I have lodged the return on my SSIA account to a Northern-Rock online account. My husband is British and still has a UK bank account (on line also). He gets better interest there than I get on the NR account. Should I transfer my funds to his UK account in order to get a better return? Would it be a good idea to 'gift' the money to him, thus allowing him to lodge the money in a UK account legitimately? There would be no gift tax liability (the amount isn't great and of course we're husband and wife). Thanks.
 
Have you asked yourself why the rate of interest is greater in the UK?

If you do a search of this site, you will see why your idea isn't likely to yield greater returns.
 
Can you not just tell us why CCOVICH as Im also interested - Is there a higher rate DIRT tax payable (20 per cent ) on the amount invested in the UK??
 
There are plenty of existing threads.

Very simply, convert your € to £. Calculate the interest you will earn on the GBP deposit in GBP and then convert the balance (principal plus interest) back to € (use forward or future rates as a guide to the exchange rate you are likely to get-adding on the margin charged by a bank to convert of course).

Then work out what you would get if you left the money on deposit in € here in Ireland (elsewhere).

Finally compare the (future) euro value of your GBP deposit with the future euro value of your euro deposit. If the GBP deposit comes out in front, fair enough, but I would be surprised if the difference is significant, otherwise financial economics are a crock!

Put simply, higher interest rates compensate for weaker exchange rates (among other things). Hence it is very difficult (for Joe Soap) to make money from the strategy described.
 
At the very least the scenario described above introduces an element of risk (exchange rates) into an investment that should be zero risk with no transaction costs. If you're prepared to accept an element of risk in your investment at least do it with something that will offer something better than a 1.5% return (the difference between the 2 rates)
 
What if you have a falling out with your partner.Open the a/c in your own name...give your partners u.k. address and watch the exchange rate. Don`t change from e to £ until it veers a bit in your favor....1 e above 69p for example .
Not sure about tax..its the same dirt system in the u.k.20% etc
In uk you can open an isa tax free for 3000 £ about 5%.
You have to be a resident ...open with a uk address ...should be fine.
Also if you have money in a deposit a/c you can get the tax back if you have a low income in u.k. by filling out a form or by filling a tax return.
Seeing as your husband is english maybe a joint a/c is the way.
 
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