Offshore savings

N

nivek

Honorary Master
Joined
Mar 25, 2005
Messages
10,616
Reaction score
2,829
Looking for some ideas for offshore savings which would earn a little bit of interest, not a huge amount but enough to keep the account ticking along

I've got a BOI account but it doesn't earn interest, also not looking at any products from the local banks, I want something as far from the SA GOVT's paws as possible

What do you guys use?
 
You're going to get zero (or very close to it) on any major currency right now (USD/EUR/GBP/CHF/JPY). Even at 0, it's still worth having as an insurance policy though. I use my brokerage account (US) and Barclays Bank (Isle of Man) to hold my cash. HSBC and LLoyd's (Channel Islands) are also good options if you've got substantial amounts to deposit. If not, go for Transferwise - they don't have any FSCS/FDIC protection though.
 
nivek said:
Looking for some ideas for offshore savings which would earn a little bit of interest, not a huge amount but enough to keep the account ticking along

I've got a BOI account but it doesn't earn interest, also not looking at any products from the local banks, I want something as far from the SA GOVT's paws as possible

What do you guys use?
Click to expand...

I’m buying property shares now in the states. Good yield relative to the interest rates and the stock I’m buying is pretty defensive. And I work for the company so I get a good discount on their shares.

It’s done well about 70% return in a year. Thanks to the rand as well
 
JayM said:
You're going to get zero (or very close to it) on any major currency right now (USD/EUR/GBP/CHF/JPY). Even at 0, it's still worth having as an insurance policy though. I use my brokerage account (US) and Barclays Bank (Isle of Man) to hold my cash. HSBC and LLoyd's (Channel Islands) are also good options if you've got substantial amounts to deposit. If not, go for Transferwise - they don't have any FSCS/FDIC protection though.
Click to expand...
Doesn't HSBC and LLoyd's require residency in the country you want to save? :unsure:
 
LaraC said:
Doesn't HSBC and LLoyd's require residency in the country you want to save? :unsure:
Click to expand...

Both of them have offshore operations in Guernsey/Jersey which are separate from the UK banks. They are specifically targeted at expats and do not require you to be resident in the UK.
 
Yikes, quite steep deposit requirements now!

LLoyds: 25K
Barclays: 25K
HSBC: 50K

When I opened a Barclays account 6 years ago there was no minimum.
 
JayM said:
Yikes, quite steep deposit requirements now!

LLoyds: 25K
Barclays: 25K
HSBC: 50K

When I opened a Barclays account 6 years ago there was no minimum.
Click to expand...
Yup, you forgot the £ prefix. :D
 
Is something like the FNB global account truly offshore and seperated from any local shenanigans? If something would happen to fnb, what will happen with the money in a global account?

It seems this is the easiest/cheapest way, not sure if it is truly a safe way.
 
Or you can just rent out my Barclays UK account for a nice fee :cool:
 
Hamster said:
Russell 2000/3000 ETF? US Bonds?
Click to expand...

I usually do US Bonds or Brokerage CDs for safe “inactive” capital. The former will only default when the world (truly) collapses, and the latter is FDIC insured. Both usually give higher returns than US savings accounts, and allow one to work around FDIC limitations ($225k max per account IIRC).
 
AntennaMan said:
Is something like the FNB global account truly offshore and seperated from any local shenanigans? If something would happen to fnb, what will happen with the money in a global account?

It seems this is the easiest/cheapest way, not sure if it is truly a safe way.
Click to expand...

FNB Global account is a South African foreign currency account. If you're worried about money seizure, this is not an option. About the only thing it hedges against is a collapse of the rand.

2nd option is the FNB Channel Islands account, which operates under Guernsey law. It is probably a bit safer than the above, but FNBCI is 100% owned by Firstrand, so if you're going to the hassle of opening an offshore account, I'd avoid it (and the Standard Bank/Nedbank equivalents).

If one of the other options (Lloyds, Barclays, HSBC) is too expensive, consider an IBKR lite account. They have no minimum and it's a good place to hold cash. Accounts get opened in a few days. Keep in mind that you can't get a debit/credit card with your account (it's for US residents only at the moment; more countries coming soon).

Or you could just get a Transferwise account and use it as a bank account. There is no depositor insurance on the account though.
 
cguy said:
I usually do US Bonds or Brokerage CDs for safe “inactive” capital. The former will only default when the world (truly) collapses, and the latter is FDIC insured. Both usually give higher returns than US savings accounts, and allow one to work around FDIC limitations ($225k max per account IIRC).
Click to expand...

FDIC is $250K. Are you getting above 0 on anything for USD currently? I used to get 1.93% in my IB account as recently as late last year, but now it's 0.
 
JayM said:
FDIC is $250K. Are you getting above 0 on anything for USD currently? I used to get 1.93% in my IB account as recently as late last year, but now it's 0.
Click to expand...

According to bankrate.com, 1.75% is the highest (fixed deposit), although the institution is unrated. Goldman Sachs (rated of course) is offering 1.6%. One of my banks (technically a credit union) is offering 1.4% now. For savings, the same bank is offering 1.2%.

I still have a bunch of fixed deposits at ~2.2% because they are 5-year. Should last a few more years. I also have a whole lot of municipal bonds up to 10 years. Any bought now will of course be short term, so on average a laddered bonds portfolio seems to have served me well.
 
cguy said:
According to bankrate.com, 1.75% is the highest (fixed deposit), although the institution is unrated. Goldman Sachs (rated of course) is offering 1.6%. One of my banks (technically a credit union) is offering 1.4% now. For savings, the same bank is offering 1.2%.

I still have a bunch of fixed deposits at ~2.2% because they are 5-year. Should last a few more years. I also have a whole lot of municipal bonds up to 10 years. Any bought now will of course be short term, so on average a laddered bonds portfolio seems to have served me well.
Click to expand...

Better than 0 for sure. If they go negative rates on USD, I'll think about moving my free cash.
 
JayM said:
Better than 0 for sure. If they go negative rates on USD, I'll think about moving my free cash.
Click to expand...

Definitely. High end buy-to-let seems to be the way to go right now. I have a few of these (grossed up returns are around 6-7%), and all tenants are still employed, and will be for the foreseeable future.
 
cguy said:
Definitely. High end buy-to-let seems to be the way to go right now. I have a few of these (grossed up returns are around 6-7%), and all tenants are still employed, and will be for the foreseeable future.
Click to expand...

I've heard about those - unfortunately I'm soon to be unemployed, so I don't think property purchases are on the cards at this stage.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X