# opening a savings account in UK



## andyviola (Aug 11, 2018)

My UK savings are just languishing in my UK bank account. was thinking about moving a large chunk of that into a fixed term bond TSB provide. But as I am now tax-resident in Spain, would this interest income open a can of worms and Spain would consider it foreign earnings?

Could earn interest in a Spain savings but getting the money over here is subject to transfer fees....


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## DonMarco (Nov 20, 2016)

andyviola said:


> My UK savings are just languishing in my UK bank account. was thinking about moving a large chunk of that into a fixed term bond TSB provide. But as I am now tax-resident in Spain, would this interest income open a can of worms and Spain would consider it foreign earnings?
> 
> Could earn interest in a Spain savings but getting the money over here is subject to transfer fees....


Assuming you need a new bank account for the bond, you'de better find out if as a Non-resident you can actually open a new bank account in the UK. I always thought you had to be resident and that's why I'm not closing my old UK bank accounts.


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## andyviola (Aug 11, 2018)

see below - sorry double clicked


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## andyviola (Aug 11, 2018)

DonMarco said:


> Assuming you need a new bank account for the bond, you'de better find out if as a Non-resident you can actually open a new bank account in the UK. I always thought you had to be resident and that's why I'm not closing my old UK bank accounts.


I cant open a NEW account as they need Proof Of Address in uk.

But the bond is with my existing bank TSB so would just be a few-clicks transfer without POA as they already know and trust me. 

Too dodgy to risk with large sums considering strictly I (suppose) dont quality ?


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## Chopera (Apr 22, 2013)

I think the money would be subject to tax in Spain so you'd have to declare it on your tax return. Usually when you open a new savings account, even with your existing bank, they ask you to declare your residency. In fact you probably should have told your bank that you are a no longer a UK resident anyway, so opening a new savings account with them might not be possible. Governments are now able to check bank accounts in other countries without having to ask permission, so it's really not something to take risks with. 

Transferring money has negligible fees, and can easily be done online with companies like Transferwise and Currencyfair, so don't let that put you off. The main difficulty is in finding a decent savings account in Spain.


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## snikpoh (Nov 19, 2007)

andyviola said:


> My UK savings are just languishing in my UK bank account. was thinking about moving a large chunk of that into a fixed term bond TSB provide. But as I am now tax-resident in Spain, would this interest income open a can of worms and Spain would consider it foreign earnings?
> 
> Could earn interest in a Spain savings but getting the money over here is subject to transfer fees....


If you can find a Spanish savings account offering interest - please let us know.


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## andyviola (Aug 11, 2018)

snikpoh said:


> andyviola said:
> 
> 
> > My UK savings are just languishing in my UK bank account. was thinking about moving a large chunk of that into a fixed term bond TSB provide. But as I am now tax-resident in Spain, would this interest income open a can of worms and Spain would consider it foreign earnings?
> ...


Omg is it that bad?


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## snikpoh (Nov 19, 2007)

andyviola said:


> Omg is it that bad?


Been here 13 years and haven't found one yet - not poor interest rate but NO interest paid at all.


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## andyviola (Aug 11, 2018)

Gosh all my expectations of Spain wrong hahahahaha.


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## MataMata (Nov 30, 2008)

andyviola said:


> the bond is with my existing bank TSB so would just be a few-clicks transfer without POA as they already know and trust me.


I don't think you'll find it's got much to do with knowing or trusting!

A quirk of the procedure (intended or accidental) means that, unlike for external applicants, for a logged in existing NW customer there are no questions about residency to answer. 

Been there, done that!


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## andyviola (Aug 11, 2018)

MataMata said:


> andyviola said:
> 
> 
> > the bond is with my existing bank TSB so would just be a few-clicks transfer without POA as they already know and trust me.
> ...


Thanks and do you feel its not worth trying to bend the law so to speak when its life savings


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## MataMata (Nov 30, 2008)

andyviola said:


> Thanks and do you feel its not worth trying to bend the law so to speak when its life savings


Who's talking about life savings! 

With the NW bond the very worst which could possibly happen is that they disqualified you from it and gave you back your initial investment less any growth, what else do you imagine happening? 

And BTW it's just an internal policy nothing to do with any law or laws.


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## andyviola (Aug 11, 2018)

Well im talking life savings lol. Yes good point i might as well stick it in my bank TSBs fixed 1 year bond as measley interest rate is still multiple times better than hopeless pathetic current account one...


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## ElaineG (Jun 4, 2015)

I guess everyone who is resident in spaIn who has over 50,000 euros assets outside spain they must make a 720 asset declaration


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## Pesky Wesky (May 10, 2009)

andyviola said:


> My UK savings are just languishing in my UK bank account. was thinking about moving a large chunk of that into a fixed term bond TSB provide. But as I am now tax-resident in Spain, would this interest income open a can of worms and Spain would consider it foreign earnings?
> 
> Could earn interest in a Spain savings but getting the money over here is subject to transfer fees....


 I think you should research interest rates in Spanish banks before making any plans to move money.
Here is some info in Spanish. 

https://www.rastreator.com/cuentas-bancarias/comparar/mejores-cuentas-ahorro.aspx
Just to be clear, I'm not recommending anything here, just passing on info.


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## Isobella (Oct 16, 2014)

Depends how much money there is to invest. Large sums left in low interest accounts means the value is falling every year right now whereas stock market investments have earnt at least 7% pa over the last few years.

If enough money buy a cheap buy to let in North of England and get around 8% return.


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## MataMata (Nov 30, 2008)

Just looked at the NW term bond interest rates.

1y = 0.75%
2y = 0.85%
3y = 1.0%

!!!!!!!!

In any case playing the 'wait/hope/pray' game is for the novices and the birds, when you live in Euroland you insulate yourself against all volatility by having your money in Euros - simple! 

In the post Brexit era l see few indications for a significant stregthening of the £ - more the contrary - in which case Euros bought now are likely to show a good profit if you did want or need to change back in the future.


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