Sold House - need to put in Savings Account - Australia looks GOOD - is there a catch

[sandk]

Dear All

 

We have sold our house (yey!) for a pitiful amount (Boo!) We are moving over to Perth in december 2012. Can we open savings accounts in Australia now to take advantage of best interest rates. we will also have amilitary pension that will be paid monthly - should we have that in Australia or leave in paid into UK account?

 

Anyone have any general/specicif advice. happy to consider a formal finanical advisor if any recommendations.

 

Thank you :rolleyes:

[cki2011]

It's the exchange rate I would be watching....

[newjez]

If you do a search on bank accounts or the finance section, I remember this being discussed many times. I think the answer was yes, but you'd best check how. You can probably open up a UK bank account in Australian dollars. With the pension, it may be easier just to set up a standing order from your UK acct.

 

The exchange rates are anyone's guess at the moment.

[northshorepom]

There's no catch in terms of the interest rates

 

The catch is that you would be exchanging at historically low rates of exchange so get loads "less" $ for your GBP than you might otherwise hope. If you are confident the exchange rate will never head in the other direction (or to do so would be such a long term thing that it effectively will never return) then this doesn't really matter once you've got over the initial pain. Similarly if you're 100% confident you'll never be going back then it doesn't really matter

[Rupert]

Dear All

 

We have sold our house (yey!) for a pitiful amount (Boo!) We are moving over to Perth in december 2012. Can we open savings accounts in Australia now to take advantage of best interest rates. we will also have amilitary pension that will be paid monthly - should we have that in Australia or leave in paid into UK account?

 

Anyone have any general/specicif advice. happy to consider a formal finanical advisor if any recommendations.

 

Thank you :rolleyes:

 

Yes you can open an account in Australia, interest rates would be better but it would not take much of an exchange rate movement to mean that you would have been better off leaving it all in UK. On the other hand the rate could get worse or stay the same. Nobody knows this, no financial advisor does either, in fact if you found one that told you would the rates will do then they are best avoided anyway.

 

You will need to make this decision. Me I would probably leave it in UK and watch for a while, but that is not to say that is the right answer.

[sandk]

Thank you all for your replies. The exchange rate is not great but I cannot see it improving short - medium term. We will not have enough money to buy a house outright in Perth and so know we will have to rent for 6 -12 months whilst we secure jobs in order to get a mortgage. I guess we want to know that the amount of cash we have is protected and will not be eroded by inflation. The best rates I can find over here is about 2.1% which is really low (some 4% accounts but the most you can put in is very low). The Australian rates seem tobe double the British ones. Ahh it's never easy is it. Thank you all again for the words of wisdom... i willsearch previous threads as well. :dull:

[boganbear]

If you open an account in Australia before you travel, the interest will be taxed punitively at 40% until you have a Tax File Number...which you cannot get until you gets here and become an Australian resident. When you do your tax return you can then claim the difference back but it is a pain in the neck

[Rupert]

Thank you all for your replies. The exchange rate is not great but I cannot see it improving short - medium term. We will not have enough money to buy a house outright in Perth and so know we will have to rent for 6 -12 months whilst we secure jobs in order to get a mortgage. I guess we want to know that the amount of cash we have is protected and will not be eroded by inflation. The best rates I can find over here is about 2.1% which is really low (some 4% accounts but the most you can put in is very low). The Australian rates seem tobe double the British ones. Ahh it's never easy is it. Thank you all again for the words of wisdom... i willsearch previous threads as well. :dull:

 

There is really not that much to search and as others have said, this is not about interest rates. You will get a better interest rate in Australia, it will be pretty easy to google and fined the best one. This decision is all about the exchange rate and there is nothing concrete you can find on predicting the future. If you think that it will not improve, then move your money over now.