Nicky

[Nicky Douglas]

Hi, has anyone got round the issue of not being able to apply for new savings accounts in the UK?  Is anyone else in the situation whereby they are leaving their savings in the UK for the moment until permanent visa is granted?

Any help would be appreciated.

Thanks

[Judy]

24 minutes ago, Nicky Douglas said:

Hi, has anyone got round the issue of not being able to apply for new savings accounts in the UK?  Is anyone else in the situation whereby they are leaving their savings in the UK for the moment until permanent visa is granted?

Any help would be appreciated.

Thanks

Have you tried national savings and investments? Backed by the government so full amount of savings are safe. 

[Marisawright]

I don't think there is a way around it.  If you are considered a non-resident of the UK then you can't open a new ISA.  

[Nicky Douglas]

Thanks Judy and Marisa, sadly NSandI aren't paying enough, when I compare it with other fixed rates on bonds which are paying 2%.  It is so frustrating.  I didn't think that moving over here would affect my savings until I became a permanent resident, currently I am only on a provisional visa and have to wait for nearly 18months before i can apply for my 100 visa.

[Marisawright]

7 minutes ago, Nicky Douglas said:

Thanks Judy and Marisa, sadly NSandI aren't paying enough, when I compare it with other fixed rates on bonds which are paying 2%.  It is so frustrating.  I didn't think that moving over here would affect my savings until I became a permanent resident, currently I am only on a provisional visa and have to wait for nearly 18months before i can apply for my 100 visa.

Unfortunately, residency rules are independent of each other. It’s perfectly possible to be classed as a non-resident of the UK and a nonresident of Australia at the same time. What visa are you on?

[Nicky Douglas]

Hi Marisa, I am on a 309 which will move to a 100 when and if I get permanent residency.

 

[ramot]

On 09/01/2019 at 15:28, Nicky Douglas said:

Hi, has anyone got round the issue of not being able to apply for new savings accounts in the UK?  Is anyone else in the situation whereby they are leaving their savings in the UK for the moment until permanent visa is granted?

Any help would be appreciated.

Thanks

We have had premium bonds for many years, obviously not a savings account but we certainly average more than 2% on our winnings, even after the lowest win was dropped to 25 pds.it’s a gamble but worked well for us, and your money is safe. we might win the big one one day!!!!

Not sure if you can buy them if you live overseas? 

ps someone did say once you have to declare your winnings if you live in Oz and pay tax here?

Edited January 10, 2019 by ramot

[Nicky Douglas]

Thanks Ramot, I already have premium bonds.

 

[rammygirl]

Yes you will pay tax on premium bond winnings in Oz and should declare them. 

It is an issue, the bank says it is money laundering and tax evasion regulations.  I cannot for the life of me see why that should stop me moving my money to a better savings account within the same bank though!  I also do a UK tax return every year and declare all interest both in UK and to ATO. I do understand I can’t open a new ISA and that ATO taxes the interest on them anyway so unless you plan on returning to UK not really worth keeping them as rates have dropped so much and no tax advantage  

I managed to open peer to peer accounts in UK before they put a stop to that too and they continue to pay a healthy rate. Not sure if any of them will allow non residents to open new accounts now though only a couple would let me do it over a year ago. 

You could also consider other investments like share accounts, I am looking into this too, problem is they have higher charges than other investments and are a bit shaky at the moment!

The other option are offshore accounts in the Channel Islands etc they offer sterling accounts for non residents too, however rates are not fantastic and many have minimum deposit amounts that are quite high  

 

Google ex pat investments UK there are some useful forums  

 

[Nicky Douglas]

Thanks for the info rammygirl. If i had known i would have this much trouble before i left I would have put everything in long term accounts then!

I have looked at the peer-to-peer lenders in the past.  Are they covered by the FSA?

Who do you hold a bank account with in the UK?

I have been thinking about bringing my savings over here and looked at what the money would be worth if i transferred it over using WorldFirst at yesterdays exchange and then put it in the highest rate account here.

Do you have to pay tax in the UK and in Australia?  It's a total pain as the UK gives higher tax breaks than Australia, but Oz has better interest rates.

Are there any tax free savings in Oz like we have in the UK other than a super?

[ramot]

31 minutes ago, Nicky Douglas said:

Thanks for the info rammygirl. If i had known i would have this much trouble before i left I would have put everything in long term accounts then!

I have looked at the peer-to-peer lenders in the past.  Are they covered by the FSA?

Who do you hold a bank account with in the UK?

I have been thinking about bringing my savings over here and looked at what the money would be worth if i transferred it over using WorldFirst at yesterdays exchange and then put it in the highest rate account here.

Do you have to pay tax in the UK and in Australia?  It's a total pain as the UK gives higher tax breaks than Australia, but Oz has better interest rates.

Are there any tax free savings in Oz like we have in the UK other than a super?

We still only pay UK tax, and have kept our UK bank accounts. We are in a different situation to most posters, retired living in Oz on a long term self funded visa and have no income in Australia, so can’t help with any questions. Sorry.

We prefer Transferwise to send money from UK, very competitive rates and often the money is there in your account the next day. Good idea to research the best way of transferring money to suit you.

Edited January 11, 2019 by ramot

[Marisawright]

3 hours ago, Nicky Douglas said:

Hi Marisa, I am on a 309 which will move to a 100 when and if I get permanent residency.

 

If your relationship is solid then there’s very little doubt you’ll get the 100 so I wonder if you’re being too cautious 

[Nicky Douglas]

Perhaps, but i would at least like my savings to beat inflation somehow.. 

[Marisawright]

1 hour ago, Nicky Douglas said:

Perhaps, but i would at least like my savings to beat inflation somehow.. 

What I meant was, why not bring your savings to Australia?  

Bear in mind that the longer you leave them in the UK, the more of a tax headache you're creating for yourself when you finally transfer the funds, because you'll be liable for foreign exchange gains which will be a pain to calculate.  

The UK may have tax breaks, but is that really making a difference to you now, since you have to declare your UK earnings on your Australian tax return anyway?

[rammygirl]

5 hours ago, Nicky Douglas said:

Thanks for the info rammygirl. If i had known i would have this much trouble before i left I would have put everything in long term accounts then!

I have looked at the peer-to-peer lenders in the past.  Are they covered by the FSA?

Who do you hold a bank account with in the UK?

I have been thinking about bringing my savings over here and looked at what the money would be worth if i transferred it over using WorldFirst at yesterdays exchange and then put it in the highest rate account here.

Do you have to pay tax in the UK and in Australia?  It's a total pain as the UK gives higher tax breaks than Australia, but Oz has better interest rates.

Are there any tax free savings in Oz like we have in the UK other than a super?

Peer to peer are not covered by the fsa you need to do your homework, the higher the interest rates the higher the risk. Some have contingency funds etc. 

we have several savings accounts with various banks and keep a current account and credit card with Nationwide. No issues with using our Australian address. 

The issue with bringing it over and rates is difficult. Not worth it for us at current rates unless we have to. Tax on exchange rates is unlikely for personal funds as advised by my accountant. 

We only do a UK Tax return as we are still directors of a dormant UK Company.  As an Australian resident you declare your worldwide income to the ATO regardless of where the money is. If you have to pay tax in the UK the amount is offset against Aus tax as there is a double tax treaty in place.