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markp

What to do with UK savings

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Hi. We now live in Oz - me as a permanent resident and my wife as an Australian Citizen. We still have a decent sum of money in the UK. Not planning to bring it over anytime soon (hoping for a better exchange rate at some point!). Any advice on the best thing to do with the money, to get the best return poss with no risk? Cheers.

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Lowest risk is NS&I direct saver and you can open an account from Aus. The return isn't  good but if you go for higher return you get higher risk and many banks won't  allow you to open an acct unless you have a UK address

Edited by ScottieGirl

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no risk your best bet would be Santander 123 or Nationwide with a linked savings a/c

If youre prepared to accept some risk I would look at one of the robo investing platforms such as Nutmeg or Moneyfarm (far higher returns in the last couple of years when shares have been doing well but of course your capital is at risk).

 

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Agree with previous replies, spread it across a few banks. We have a decent amount with 50% cash spread across HSBC and Natwest, with online access from here and the other 50% invested in our ISA with H&L

As Johnny suggested, if the money is going to be there long term (over 5 years as a min) then you may be better off investing it in the market by buying some funds or trusts. There are many that are 'quite' safe and pay great dividends, definitely better than what the banks give. Of course, you shouldnt check the price of those shares daily and worry if it fluctuates. If 10% swings worry you then it may not be worth the stress and best left in a bank account


Karen & Ken | PRs done : Jun 16 | Moved to Aus : Dec 16 | Break from Life : Dec 16 to Feb 17 | Mel Rental, Jobs and City Life : Feb 17 | Mel Land Purchase : May 17 | Home Construction : Sept 17 | (Bye bye city and hello suburbia) Moved in : Aug 18 | and on to the next............

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On 8/17/2017 at 16:33, markp said:

(hoping for a better exchange rate at some point!)

You may be waiting a while.  The GBP is expected to continue to weaken as The Brexit debacle unfolds.

The GBP:AUD is down about 20% since May 2016.  What if it falls another 20%?  I think a few of the investment banks are expecting a further 10% depreciation by 2018 (v the Euro but will follow through).  Interest rates are pretty low so you are going to earn SFA on it.  Your risk is with the F/X rate.

If you plan to live and work in Australia for a long time, it may be worth bringing some (most of it) over.  Try and pick your timings with an rise in the f/x rate ($1.62 at the moment - anything >$1.65 I'd move)

If you plan to return to the UK in the future and don't need the money in Oz, then leave it there. 

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Premium Bonds?? No risk and you can withdraw them whenever you want.
Limit is £50k per person I think.



Sent from my iPhone using PomsinOz

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On ‎22‎/‎08‎/‎2017 at 14:25, Collie said:

You may be waiting a while.  The GBP is expected to continue to weaken as The Brexit debacle unfolds.

The GBP:AUD is down about 20% since May 2016.  What if it falls another 20%?  I think a few of the investment banks are expecting a further 10% depreciation by 2018 (v the Euro but will follow through).  Interest rates are pretty low so you are going to earn SFA on it.  Your risk is with the F/X rate.

If you plan to live and work in Australia for a long time, it may be worth bringing some (most of it) over.  Try and pick your timings with an rise in the f/x rate ($1.62 at the moment - anything >$1.65 I'd move)

If you plan to return to the UK in the future and don't need the money in Oz, then leave it there. 

Agree with the above.   If you have financial interests in both countries you can at least make the exchange rate swings advantageous, e.g. paying off a UK mortgage with Aussie Dollars works out very well just now and may get better.  

The ones I feel for are those who need to bring over large amounts of GBP to set up or buy in Oz and are getting caned on the exchange rate.   As an example GBP10K is still a reasonable amount of money for most but convert it to AUD and living over here you can burn through AUD16K in a flash in my experience.

I was working through financial stuff with Mrs Kash the other day and we quickly realised we had been stressing too much over small stuff and in actual fact exchange rate swings made a huge difference to our overall financial position so worth keeping track of and trying to make it work to your advantage if at all possible

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Hello all,

Good thread. I have also been waiting for a more favourable exchange rate, but now realise that I'm letting inflation eat away at my pounds in the bank. As far as I could see, MoneyFarm doesn't allow overseas residents, however Nutmeg does. The fees are a little high, but I think it's the best option given the restrictions with most of the other institutions.

Does anyone know if there are any tax implications of having your funds invested rather than saved in the U.K.? I'm thinking partially about capital gains, but mainly I want to ensure that I don't get taxed for bringing my money into the country.

Thanks and best regards,

vulture

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