Zurich International makes a splash in the offshore savings market.
Rachel Thrussell, Head of Savings at moneyfacts.co.uk comments on the new instant access account from Zurich Bank International:
“Recent figures show that over five million Britons have upped sticks to work or retire in sunnier climes, searching for their dream lifestyle overseas. There are sizeable British expatriate communities now in over 100 countries, but when it comes to finding a new home for their savings the choice is somewhat limited.
“The offshore savings account market has grown steadily, now with over 190 accounts available to UK mainland residents and in some instances expats, while the expatriate only market has been slow to catch up, still with only a handful of providers to choose from. So the launch of the new best buy account from Zurich Bank International will be a welcome boost to the expat community.
“Zurich Reward Account is available to expatriates and to residents of the Isle of Man, currently paying 5% gross on any balance between £5K and £1m. The account is also one of the few accounts to offer a rate guarantee above base, guaranteeing to be 0.25% above bank base rate until 30/6/07, and not to be less than 0.25% under base until January 2010.
“The recent increase to Bradford and Bingley’s account, the nearest rival paying 5.1%, combined with the launch of the Zurich Reward account certainly beat the existing accounts hands down, with the closest being 4.9% on a 90-day notice account. Unlike the Bradford and Bingley account, the rate guarantees on the Zurich Reward account provides a buffer for the consumer, whereas although 5.1% is a very competitive rate consumers should be aware that it includes a 0.4% bonus to 31/03/07, but will appeal to those looking for internet access to their funds.
“Zurich Reward Account certainly offers a competitive deal for the expatriate market, paying a decent rate of interest while also offering flexible terms for operation, a relatively low opening balance and for those consumers who prefer telephone or postal banking, the Zurich Reward account offers both.
Company |
Account |
Notice or Term |
Deposit |
Gross |
AER |
Interest Paid |
|
Bradford & Bingley International |
eAccess |
None |
£1,000 |
5.10%* |
4.95% |
Yly |
|
Zurich Bank International Ltd |
The Zurich Reward Account |
None |
£5K |
5.00% |
4.97% |
Yly |
|
Standard Bank |
Expatriate Savings |
90 Day |
£10,000 |
4.90% |
4.90% |
Yly |
|
HSBC International |
90 Day Notice |
90 Day |
£25,000 |
3.22% |
3.25% |
½ Yly |
|
HSBC International |
30 Day Notice |
30 Day |
£25,000 |
2.96% |
2.98% |
½ Yly |
|
Source: www.moneyfacts.co.uk Date Compiled: 14 August 2006
* = Introductory variable rate for a limited period. 0.40% bonus until 31 March 07.
“Offshore banking may still hold the stigma that it is only advantageous for very wealthy individuals looking for tax breaks, but this is this is most definitely not the case. With low minimum opening balances and a wide range of account terms, the offshore market is now open to a much wider audience. Application and operation is simple and can often be done through a variety of channels including, post, fax, telephone and internet.
“And for those living within Europe, with the ECB rate at 3.00%, 1.75 points lower than the Bank of England Base rate, taking the time to review their savings and considering options outside of their country of residence could easily provide additional returns.”
Visit our new website www.moneyfacts.co.uk to see our new selection of offshore best buy charts including:
- Cheque accounts
- Deferred Interest accounts
- Euro accounts
- Dollar accounts
- Expatriate accounts
For further comment contact: Tony Davies Head of Wealth Management from Zurich Bank on 01453 839484
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