Channel Islands account

[DentistGuy]

Hi,

I am thinking of opening an FNB Channel Islands account and maintaining the min. deposit to keep the account fee free- what puts me off though is that the ROI on the 36 month account is 3.8%pa. That doesnt seem to keep up with CPI.

Anyone had experience with these? Any other accounts with better returns?

 

[Naks]

Interest rates in the UK, EU, ROW, are very low compared to ZA.

Look at it this way: even with low interest rates, a low ROI will benefit you in the long run with the devaluating ZAR.

 

[DentistGuy]

Just say you want to invest in an ETFs offshore for a better return than those bank interest rates.
Is it better to open a new account offshore, convert rands to USD (or pounds) and then invest in the ETF or better to invest in offshore index trackers on the JSE (eg MSCI World) ?

 

[DentistGuy]

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These rates seem higher than FNB?

 

[Naks]

Just say you want to invest in an ETFs offshore for a better return than those bank interest rates.
Is it better to open a new account offshore, convert rands to USD (or pounds) and then invest in the ETF or better to invest in offshore index trackers on the JSE (eg MSCI World) ?

I don't have a specific answer for you, you should probably get professional advice on this matter.

But let me put it this way: the more money you have overseas, the less you will suffer when the ZAR tanks even further. And the JSE is not doing/going to do that well, since a lot of companies are disinvesting from here.

 

[SafariTin]

Hi,

I am thinking of opening an FNB Channel Islands account and maintaining the min. deposit to keep the account fee free- what puts me off though is that the ROI on the 36 month account is 3.8%pa. That doesnt seem to keep up with CPI.

Anyone had experience with these? Any other accounts with better returns?

Why do you want a Channel Islands account?

If you want it to save tax or protect money from the SA government, then the ROI should not be the deterrent.

If you have enough money to require a tax haven or are concerned about the SA government, then you should be able to afford a good financial planner.

 

[JayM]

Hi,

I am thinking of opening an FNB Channel Islands account and maintaining the min. deposit to keep the account fee free- what puts me off though is that the ROI on the 36 month account is 3.8%pa. That doesnt seem to keep up with CPI.

Anyone had experience with these? Any other accounts with better returns?

You need a brokerage account, not a bank account. Interactive Brokers is the best bet for SA residents right now - then you can invest in a wide range of securities, or get 5.25% on your USD cash. Cash is never going to keep up with inflation though.

 

[pinball wizard]

I'd try Banc du Geyser. I mean, banc is right there in the name.