# Opening non-resident savings account in UK



## MadridExUK (Oct 27, 2014)

I've been in Spain for some years and had a building society account forever back in the UK. My building society is basically throwing me and my money out because, due to the new regulations, they've decided they're too small to handle having non-resident customers. 

So the question I have to answer is: do I keep my money in the UK, or bring it to Spain?

I've gathered that I *can* open non-resident accounts in some banks (e.g. Lloyds), but the interest rates are derisory. 1.1% for a fixed-rate deposit is the best I've heard, by some margin. And is it true that your money is not protected by deposit insurance? 

Banking is becoming completely balkanised by the looks of it. It seems the only sensible option, if you want to earn anything on your money, is to move it all to Spain, which also means betting everything on the euro - something I'd prefer not to do. 

Do I have any other options?


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## snikpoh (Nov 19, 2007)

MadridExUK said:


> I've been in Spain for some years and had a building society account forever back in the UK. My building society is basically throwing me and my money out because, due to the new regulations, they've decided they're too small to handle having non-resident customers.
> 
> So the question I have to answer is: do I keep my money in the UK, or bring it to Spain?
> 
> ...



I think that you will find that you can NOT open a bank account or building society account in UK unless you have an address there and are UK resident.

Some places like Lloyds International or Santander Isle of Man offer accounts for non-UK residents but the interest rates are poor (just like they are about everywhere now).


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## MadridExUK (Oct 27, 2014)

Perhaps the phrase "in the UK" is the wrong one. What I want is really an account in sterling with decent interest rates. 

Some UK banks do offer sterling accounts for non-residents, but they're accounts with their subsidiaries in places like the Isle of Man. And the interest rates really are feeble. Moreover, the deposit insurance offered is from the Isle of Man's own scheme, which I'm not sure inspires a great deal of confidence. The protection limit is 50,000 sterling, I believe. I found some deposits on money.co.uk at better rates (up to 3%), including from a bank (Conister Bank) I've never heard of in the Isle of Man. Sorry, can't post the link. For the Isle of Man, it seems that there is automatic information exchange with all EU countries, so you'd declare your interest in the tax return here in Spain (I presume it's covered by the double taxation treaty with the UK). 

Frankly, moving from a high-street building society with no more than a couple of branches to an offshore account on the Isle of Man is not what I ever imagined myself doing. But I may have to consider it. 

For comparison, tucapital.es gives the best deposit rates available in Spain (again, not allowed to post the link). Aside from a Bankinter 5% deposit, which is a one-year only thing, 2.25% is about the best available, aside from deposits in a New Zealand bank, for the truly adventurous. 

It's a bit ironic that regulations are pushing someone who's had a local building society account since he was knee-high to move his money offshore, but that seems to be where we are.


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## larryzx (Jul 2, 2014)

I had a sterling account with Sol Bank. Good rate for a year, it was a while ago, then down to almost nothing. That was bad enough but when I transferred the funds to another bank, Sol Bank charged me 0.5% on the whole amount. *That was just over £800*

So take care.


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## MadridExUK (Oct 27, 2014)

Will do. Thanks!

Aren't a lot of people going through exactly the same thing right now? There must be thousands who had accounts in the UK which they've been able to keep until very recently.


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## Sehtar (Feb 3, 2016)

MadridExUK said:


> Will do. Thanks!
> 
> Aren't a lot of people going through exactly the same thing right now? There must be thousands who had accounts in the UK which they've been able to keep until very recently.


Which bank or housing society pays the highest interest rate in UK?


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## xabiaxica (Jun 23, 2009)

I've moved this thread to the Britain forum - maybe someone living there will at least be able to answer the most recent post, if not the previous ones :fingerscrossed:


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## Williams2 (Sep 15, 2013)

Sehtar said:


> Which bank or housing society pays the highest interest rate in UK?


For those Expats who are Non resident UK and Resident in Spain - it's pointless even considering UK savings accounts. For a start you cannot open or switch to a better rate UK savings account once you are officially Non Resident in the UK.

The answer of course, is to consider off-shore saving accounts. The most popular being those that are off-shore in the Channel Islands or Isle of Man. Ok the protection limit is £50,000 on both off-shore islands but there's nothing to stop you opening 2 off-shore savings accounts with £50,000 in the Channel Islea and another £50,000 on the Isle of Man.
Naturally any interest earned is paid gross into these off-shore saving accounts - although you would have to declare such
interest to the Tax Office in Spain.

Finally nothing can be done about the derisory rates of Interest paid on such Savings Accounts but the off-shore ones tend to be higher. Although there's nothing to stop you looking at Online Share trading to boost your returns ( only with those savings you can afford
to lose, if the market turns against you, of course ) 

Also you could always tie the money up in property instead.


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## xabiaxica (Jun 23, 2009)

Williams2 said:


> For those Expats who are Non resident UK and Resident in Spain - it's pointless even considering UK savings accounts. For a start you cannot open or switch to a better rate UK savings account once you are officially Non Resident in the UK.
> 
> The answer of course, is to consider off-shore saving accounts. The most popular being those that are off-shore in the Channel Islands or Isle of Man. Ok the protection limit is £50,000 on both off-shore islands but there's nothing to stop you opening 2 off-shore savings accounts with £50,000 in the Channel Islea and another £50,000 on the Isle of Man.
> Naturally any interest earned is paid gross into these off-shore saving accounts - although you would have to declare such
> ...


But sehtar (to whom you have replied) appears to be moving to the UK - which is why I have moved the question here


and there might just be the offchance that someone knows of a bank which will permit non-resident accounts.....:juggle:


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