Anna Glypta Posted December 26, 2011 Share Posted December 26, 2011 With UK savings rates at rock bottom I was looking around to try to get some return on capital and found several Aussie and New Zealand banks offering up to 6.3% on their online savings accounts. Has anyone had any experiences of investing in the antipodes, and what are the snags? Link to comment Share on other sites More sharing options...
MrSmith Posted December 26, 2011 Share Posted December 26, 2011 With UK savings rates at rock bottom I was looking around to try to get some return on capital and found several Aussie and New Zealand banks offering up to 6.3% on their online savings accounts. Has anyone had any experiences of investing in the antipodes, and what are the snags? I haven't seen them but if they aren’t UK based then you won't get the UK government backed £50,000 savings guarantee so if they go under you could lose your. Link to comment Share on other sites More sharing options...
Anna Glypta Posted December 26, 2011 Author Share Posted December 26, 2011 I haven't seen them but if they aren’t UK based then you won't get the UK government backed £50,000 savings guarantee so if they go under you could lose your. Obviously they won't be guaranteed by the UK FSA. However the Australian government has its own equivalent where $250,000 per person per institution on deposits is guaranteed under the Financial Claims Scheme. Link to comment Share on other sites More sharing options...
MrSmith Posted December 26, 2011 Share Posted December 26, 2011 Obviously they won't be guaranteed by the UK FSA. However the Australian government has its own equivalent where $250,000 per person per institution on deposits is guaranteed under the Financial Claims Scheme. It sounds like a no brainer then. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted December 26, 2011 Share Posted December 26, 2011 They might be worth a look, but given that you will have exchange costs both in buying the Australian dollars and in re-converting to Sterling, that will reduce the yield, so they're probably not a very good short-term option. If Australian interest rates should fall, you could get a negative return. If you're planning on going to Australia in the next couple of years and you intend to use the money in the account while you are there that would reduce some of your cost. Link to comment Share on other sites More sharing options...
MrSmith Posted December 26, 2011 Share Posted December 26, 2011 I just tried to apply for a couple of acounts and their terms prevent it. You need to be an Australian resident for taxation purposes and have an Australian residential address and phone number. Link to comment Share on other sites More sharing options...
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