What's an Offshore Savings Account?

Offshore as a financial concept simply means placing money, wealth or assets in a country other than the one in which you live.

Typically it is the wealthy that place money offshore to take advantage of the favourable taxation regimes available in so called tax havens – but even for the likes of you and me there are advantages to the offshore savings world that we can all benefit from.

Offshore savings accounts allow people to either save a regular monthly amount or a lump sum, earn higher rates of interest from some offshore providers than we could if we saved ‘onshore’ with the local bank – and what’s more, we can earn our interest gross and only pay tax on it once annually which allows for extra compound growth in the interim which can give our savings a little extra boost.

1. Tax Free
   Most of us still have to pay tax on any income or gain that we derive even from investments or savings that are placed offshore. We are under an obligation to tell our local tax authority about any offshore savings accounts we have when we make our annual declaration to the IRS or HM Revenue and Customs. But because taxation is not deducted at source on the majority of offshore savings accounts we have up to a whole twelve months of compound interest giving our savings even greater growth power which makes saving offshore advantageous even when we ultimately do have to pay tax on the gains we derive from our savings.
   
   
2. High Interest
   The offshore savings accounts that offer the highest rates of interest are available to those in a position to regularly save large amounts monthly. Basically the more you can afford to save the higher the rate of interest you will be given, the higher the rate of interest the greater the compound growth you can earn and the harder your money will work for you.
   

A number of leading international banking providers offer offshore savings accounts that are easily accessible and secure. The award in 2009 for best offshore bank for expats was won by Anglo Irish Bank. You can open an account with them easily online and then have full access to your account and growth statistics online.

Gone are the days when saving and investing offshore was complicated, clandestine and the realm of the super rich or the super criminal – and we herald the arrival of an accessible concept of offshore from which we are all welcome to benefit.

Anglo Irish Bank - Best Expat Savings Account 2009

Leading expat magazine, Nexus, has voted Anglo Irish Bank Corporation (International) PLC winner in four categories in its 2009 Best Banks for Expats Awards, one of the most high profile and sought-after awards in the financial services industry.

The Nexus Awards are based on the number of times a savings account appeared in the magazine's monthly 'Best Buy' tables during the last 12 months. "Best Buy" accounts are those which offer the highest interest rate available at the time in the different categories of account.

Success in the Nexus awards confirms that Anglo Irish Bank has consistently offered competitive interest rates during the last year.

Anglo Irish Bank came top in four award categories:

• Best Offshore Bank for Expats, Overall (Winner)
• Best Offshore Bank for Expats, Sterling Notice Accounts (Winner)
• Best Offshore Bank for Expats, US Dollar Accounts (Winner)
• Best Offshore Bank for Expats, Euro Accounts (Winner)
  

Commenting, Anglo's Head of Personal Savings, Gary Quaggan, said: "When we launched our Privilege range of accounts we made a commitment to keep rates consistently competitive. Winning these awards for the fifth year running is a powerful and independent endorsement that we are delivering on that promise. The fact that we have also once again won in four award categories, including Best Overall Offshore Savings Bank, signals to expatriates, and others looking for international deposit accounts, that they can trust Anglo Irish to offer them a good deal across the board.

We aimed Privilege at a broad spectrum of investors, including expatriates who tend to have particularly busy lifestyles and can't always be expected to follow every rate change in the savings market. Many expatriates, therefore, find that Privilege's pledge to keep rates competitive over the medium to long term is something which particularly appeals to them. We like to think that our reputation for excellent customer service also plays an important part in winning and retaining investor loyalty".

Anglo Irish Bank Corporation (International) PLC first launched its Privilege range of deposit accounts in January 2002. Since then, its suite of deposit and fixed interest accounts has appeared regularly in the "Best Buy" tables.

All Anglo accounts are available to pay interest gross*, can be operated by telephone, in person, or online, and are available with a minimum opening balance of 5,000 in GBP£, US$, or Euro€.

*Subject to the provision of the European Savings Tax Directive

Sourced from Anglo Irish Bank [Link]

Invest in Gold?

Why right now could be a ‘golden time’ to invest

Another month, another statement showing your savings aren’t earning much interest. Maybe it’s time you thought about investing your money in something solid?

When recessions hit, the one reliable asset has always been gold – and in recent months, it’s outperformed almost every other form of investment.

But if you want to jump on the golden bandwagon, where do you start and how safe is it?

Why invest in gold?

It’s not just pirates who want to get their hands on gold coins these days. As stocks and property prices plummet, demand for the precious metal has rocketed.

The price of gold has been on the up since 2001, spiking at more than $1000 an ounce in March 2008. At the time of publishing, the gold price was $925.15 per ounce (£610.86)*.

The price of gold has been on the up for several years. In 2001, the gold price went as low as $255 per ounce. But the price spiked at more than $1000 an ounce in March 2008. At the time of writing, the gold price was $925.15 per ounce (£610.86)*.

Gold has been the traditional bell weather for investors over the centuries, particularly in times of economic stress. As governments around the world are spending more to prop up their economies, many people worry about inflation and whether the pound or the dollar will keep their value. If you can’t rely on paper money, the logic goes, rely on metal.

It’s also relatively easy to buy and sell and has a high unit value, which means a small amount is worth a lot! But it’s definitely not a short-term investment and remember, valuations can go down as well as up!

UK Banks Post Crunch - Who Owns Who

The financial turmoil of the past 18 months has led to a wave of consolidation in the banking industry, making it even harder to ensure you’re not putting all your eggs in one basket.

A recent article on Confused.com takes a look at today’s banking sector to find out who actually owns who on your highs street.

Why it matters

If a savings institution goes under, the Financial Services Compensation Scheme (FSCS) will provide compensation of up to £50,000 to single account holders and £100,000 for joint accounts.

However, it’s important to note, the compensation limit applies per banking licence and not per brand, meaning it’s crucial you know who owns who.

When it gets confusing

Staying within this compensation limit is not as simple as just making sure you don’t have more than £50,000 saved with one banking group.

Some banks have merged but continue to operate their bands under different banking licences. In some cases, special measures have been put in place so that merged groups are treated as having separate licences, even though they don’t.

While you won’t go wrong if you ensure you don’t have more than £50,000 saved with any one institution, you could potentially miss out on good returns if two brands within one group are operating under separate licences and both have competitive deals.

Read a guide to the big bank operators in the article

The Age of Insurance: Are we being discriminated?

The age of an individual has always been an issue when it comes to insurance. Yet, it seems that with the spotlight currently firmly on the industry as it finds itself at the heart of the economic crisis (at the same time striving to assure customers that cover is no less relevant and affordable), a wave of criticism regarding age discrimination by insurers has been seen in the media. So are we being discriminated against by insurance companies?

One of the issues that can be seen to hinder the trustworthiness of these discrimination claims is the fact that they seem to have been borne from the work of comparison websites. Without mentioning any comparison site specifically here (and I endorse the usefulness of such services), reports at moneynews.co.uk state of one site’s research which found “that young drivers pay more for their insurance”. (This is in April 2009 under the headline: Car Insurance Industry Rife with Discrimination.)

The first problem here is that this is nothing new: 17 and 18 year-old drivers have had to pay expensive premiums for car insurance cover for years now, and the shocker is that this is still increasing (as are most policies). I acknowledge, also, that a 17 year-old girl must pay 58 percent more than her 18 year-old friend – and this is alarming.

However, I do think we need to understand two things. The first is the process by which car insurance premiums are calculated for individuals with no or minimal driving background. Other than their peer group, where else can insurance companies look in order to ascertain the risk and its subsequent monetary equivalent? The second thing to remember is when the implied (or sometimes, outright stated) answer to a newsworthy issue is to compare quotes from different companies, possibly via a very hand comparison site, then such “reports” are likely to be biased.

That said, in a separate report at the same site (and with research carried about by the same comparison website), a more unfair and less justifiable trend has emerged in the travel insurance sector.

The report, Travel Insurance Prices ‘Hiked Overnight’, states that a 66 year-old individual will pay an average of 106 percent more for a policy than a 65 year-old – a difference that is far more extreme, and which doesn’t appear to need to depend so much on a general peer risk assessment when an individual medical report and the risk of destination can be taken into account. I suppose the lesson here is to keep an eye on your policies with the same fervour you question your information sources.

Home Insurance Fraud: Don’t Be Lured to the Darkside

When the going gets tough, the tough sometimes get fraudulent. Recent figures released by the ABI (Association of British Insurers) have shown a record level of fraudulent insurance claims, proving people are willing to use their insurance policies as a way of bringing in extra cash.

According to statistics, 2000 fraudulent claims are made every week, amounting to an estimated value of £14 million.

What is insurance fraud?

If you make an insurance claim for something that either hasn’t happened, or you know to be wrong, you’re committing insurance fraud.

How much fraud is there?

The most common form of fraudulent claims is for home insurance - 55,400 frauds were detected last year at an estimated value of £110 million.

Why are there so many claims?

There are more opportunities for fraudulent home insurance claims than for any other class of insurance.

Car insurance fraud, for example, requires a little planning to orchestrate a convincing accident or theft. However, spilling paint on your sofa in order to get a new three-piece suite, is much easier.

Who’s guilty of insurance fraud?

A YouGov survey of 3000 adults, showed one-in-five admitted they’d be tempted to cheat on their insurance - despite the likelihood of getting caught.

But if you think cheating’s a quick way to boost your bank account, think again – the insurance inspectors will be after you!

The crackdown on fraudsters

“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” says Nick Starling, ABI’s Director of General Insurance and Health, on the ABI website.

Claimants may have to provide minute detail, and may even find forensic experts getting involved, all in an effort to stem the tide of fraudulent claims. And if found out, fraudsters may be blacklisted by insurers, or may even gain a criminal record.

Fraud makes home insurance more expensive

Cracking down also prevents honest policyholders paying the price.

“Fraud adds an extra £40 a year to the average premium,” says Starling, “which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.”

For more information on home cover, read Confused.com’s Home Insurance Buyer’s Guide.

Sourced from http://www.confused.com/featured-articles/household/home-insurance/home-insurance-fraud-don-t-be-lured-to-the-darkside-3540983065

How to Cope if you Lose Your Job - A Survival Guide to Redundancy

Tips and advice on how to deal with being made redundant

The dreaded ‘R’ word. It’s one you hope never to hear. But, worryingly, redundancies have been on the increase ever since the economy took a tumble.

The current economic climate has forced many companies to close and put many jobs under threat. Employers often resort to making staff redundant as a way of cutting costs. Implementation of new technology/systems or a workplace relocation can also deem a job redundant. 

Who can be made redundant?

• Any employee under contract of employment – written, verbal or a combination. Just turning up to work constitutes an agreement of employment.

Who is eligible for a redundancy payout?

To be eligible for a payment, you should meet all of the following criteria.

• You need to have been in continuous employment for at least two years.

• You are over the age of 20 at the time of dismissal.

• You have been dismissed by reason of redundancy.

What are your entitlements?

Unless a more generous settlement is written into your employment contract, you will receive only the statutory minimum redundancy pay. This is based on how long you’ve been employed, your age and your weekly pay.

Statutory Minimum Redundancy Pay

The amount is calculated as:

• Aged 41 or over - One and a half weeks’ pay for every full year

• Aged 22-41 - One week’s pay for every full year

• Aged 18-22 - half a week's gross pay for each year worked (as long as you worked in the same job beyond the age of 20).

If your employer doesn’t give you redundancy pay when you’re entitled to it, you should write to them asking for payment. If your employer still refuses to pay or cannot make the payment, you could make an appeal to an Employment Tribunal.

Note: The 2009 budget announced that the weekly rate of statutory redundancy pay will increase to £380.

Resource: The Advice Centre

Tips for dealing with redundancy 

Budget: Draw up a comprehensive plan of your out-goings. Where can you save money and how can you make best use of your cash? Speak to a financial advisor if necessary.

Claim your benefits: Depending on your savings and record of National Insurance contributions, you may be entitled to state benefits. Make an appointment with your local benefits office to find out more.

Invest: If you’re lucky enough to receive a substantial payout, think carefully about what to do with the money. You could pay off debts, or put it in a higher-interest savings account or ISA. Again, consider speaking to a financial advisor if necessary.

PPI: If you’re still employed and worried about the future of your job, you might consider getting payment protection insurance (PPI)? This could help pay a proportion of your monthly bills and offer support for a fixed period while you hunt for a new job. 

Source: How to Cope if you Lose your Job