3 Reasons Why Rate-Chasing for Offshore Savings Accounts Is Bad

Comparing offshore savings accounts is tricky because there are many features to consider, including interest rates, fees, and special charges. Some try to simplify things by comparing interest rates. The better the interest rate, the better the savings account, right?

Not really. The interest rate does matter, but it shouldn’t come at the cost of account restrictions or subtle fees. Three reasons why rate-chasing can be bad:

·       Certain banks offer excellent interest rates on offshore savings accounts, but with a catch - the rate is valid only for a limited term, after which the money is rolled into another savings account, which has a less attractive rate. And it’s up to you to write to the bank to tell it that you want your money at the end of the term, else the money is moved automatically. And once it’s moved, you have to pay a few hundred pounds to release the cash.

·       Banks can offer really high interest rates for offshore savings accounts to improve their cash flow and sustain their assets. In other words, surprisingly high rates can be a warning sign that the bank is not as secure as you’d want it to be. A good example of a bank who once offered excellent rates and then collapsed was Icesave. The bottom line is that you want to put your money in a bank whose future is secure, and it often happens that secure banks don’t offer the best interest rates.

·       Many high-rate offshore savings accounts don’t work for people based in certain countries, even if they’re expats. Most restrictions apply to people based in Africa, the Middle East, and parts of Asia.

In the end, remember that when it comes to offshore savings accounts, advantageous interest rates are critical, but they are not the only feature you should be concerned with. Check all the facts before opening a savings account, else you may regret not having done it later on, Ask the experts at comparethefinancialmarkets.com to find the best offshore savings account for you.

Compare the Best Offshore Savings and Deposits

As in all things, when comparing offshore savings and deposits, advice should be sought from experts.

Choosing the best offshore savings and deposits can be difficult, so careful consideration is crucial. Your questions on the best offshore accounts will be answered by our industry experts, free of charge. 

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