SydneySister Posted December 31, 2015 Share Posted December 31, 2015 Hey, I wont be able to move until at least another two years (by the time I finish my degree and work for 12 months for post grad experience) so plan to save as much as possible within that time. I have seen people stating they had savings accounts in Australia post move as there is a better interest rate? Anybody able to shine some light? I have had a look about on line but its all a bit difficult to know what is best judging by online from a different country. I like the idea of having a direct debit to another account so its out of sight out of mind and im not tempted to dip into it but just unsure if its better to do this in a UK account of not. Pros / Cons please? * Only issue is that as a student still at present the constant flow of income into an account would be slim for the next 7 months, some months more than others probably depending on personal expenses each month around Link to comment Share on other sites More sharing options...
Marisawright Posted December 31, 2015 Share Posted December 31, 2015 A lot can happen in two years, so my bet would be to keep your savings in the country you're currently in - especially as the amount won't be significant for the first year or so. Link to comment Share on other sites More sharing options...
SydneySister Posted December 31, 2015 Author Share Posted December 31, 2015 I will still manage to save £6000 or so I am sure. But the real savings will start once I am in employment, and start selling house stuff. Will start work once I have returned from my holiday to Sydney in September hopefully Link to comment Share on other sites More sharing options...
Marisawright Posted December 31, 2015 Share Posted December 31, 2015 I've been thinking about it a bit more and I can see several other reasons why keeping the account in the UK would make more sense. If you open an account in Australia, you'll be treated as a foreign investor and the bank will take 10% tax off the interest to give to the Australian govt. You will also have to declare the account on your British tax return, and may have to pay tax on any gain or loss on the exchange rates. Interest rates in Australia are falling whereas in the UK they're rising, and if you're clever in your choice of account you'll get a better interest rate in the UK. Link to comment Share on other sites More sharing options...
SydneySister Posted December 31, 2015 Author Share Posted December 31, 2015 I've been thinking about it a bit more and I can see several other reasons why keeping the account in the UK would make more sense. If you open an account in Australia, you'll be treated as a foreign investor and the bank will take 10% tax off the interest to give to the Australian govt. You will also have to declare the account on your British tax return, and may have to pay tax on any gain or loss on the exchange rates. Interest rates in Australia are falling whereas in the UK they're rising, and if you're clever in your choice of account you'll get a better interest rate in the UK. Super! Thanks for the heads up!! I'l set one up here. x Link to comment Share on other sites More sharing options...
Gbye grey sky Posted December 31, 2015 Share Posted December 31, 2015 Not sure that it is even possible to set up a savings account if you are non-resident. A bank account, yes. But in order to transfer the funds or indeed access them you have to first visit a bank branch in Australia personally. Definitely save in the country where you are resident. Offshoring money to improve returns is the preserve of millionnaires. Link to comment Share on other sites More sharing options...
Ken Posted January 1, 2016 Share Posted January 1, 2016 If you open an account in Australia, you'll be treated as a foreign investor and the bank will take 10% tax off the interest to give to the Australian govt. You will also have to declare the account on your British tax return I think he should keep his savings in the UK too until he's got his visa and is definitely going to Australia, but I think the tax issue is a red herring unless his earnings are below the UK tax free threshold. If he has an account in the UK the bank will take 20% tax off the interest to give to the British govt and he'll still have to declare the account on his British tax return. The tax taken off in Australia will reduce the amount of UK tax he has to pay - if the interest was identical the amount of tax he'd have to pay would be identical just split between two different tax authorities. PS: I opened an Australian savings account before moving (but I did have a PR visa) but it was one of only a very limited number of accounts available to non-residents. The accounts available to residents offered better interest rates. Link to comment Share on other sites More sharing options...
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