savings - english or french account?

[squidge]

Hello everyone! I am another forum virgin ....so please don't laugh at the questions I post......(if, however, I'm still asking stupid things in three months time I'll need to know...).  

I'm selling my house at the moment to fund a house buy in France next spring. Do you think I should be putting the savings in a high interest account here or setting up a French account and popping them in there for the nine months or so? I admit to not knowing anything about the current position of the Euro.... or what interest rates are available from French savings accounts....or even whether I would be able to set up such an account anyway!

Any guidance/suggestions gratefully received!!

 

 

[Dilbert]

Squide

My wife and I are in a similar position.  We are currently selling our house and will probably put the money into savings prior to any purchase as we haven't found an ideal property yet.  I have no idea whether an English or French account will give a better return, we haven't investigated that yet. 

The only thing I would say is that if you can open a savings account in France it will stand you in better stead with the bank when you come to open a current account or need any help with loans or a mortgage.  However, I am not sure how you stand with regard to opening the account if you are not resident.  My wife is living in France at the moment so has an address and is a French National so has a current account there.  A savings account would not be an issue for us.

[ChezShells]

What percentage can you get, have you looked around.

If your leaving the UK and renting then offshore may be best bet, otherwise A&L do a decent web account but 25k max at 5% ish (several accounts prob be needed)

Also, may depend on exchange rate from UK to France when the time comes, obviously no one can predict what will happen but i'd look at around 1.42-1.45 so if it goes way higher than that ie.1.50+ then get it into a French account when this happens so you will gain from the exchange then whatever % you get in France.

dont know any french bank rates but for me put it into a UK account and see what happens with the ex rate.

[letrangere]

You don't say what currency you're looking at saving your money in for that's what determines the interest rate, not the country the account's held in.  Interest rate on Sterling is double what you'll get on Euros at present.  But I'd seek professional advice pronto because you could make quite a bit extra if you're eligible for a tax free account.  (An accountant will be able to help you.  He'll want to know about your work situation, when you're moving, etc.)  Many offshore accounts offer around 5.75/6% gross.  The Nationwide is a particularly good, can't remember if they're Isle of Man or Guernsey.  And remember still no charges for withdrawals from oversees ATMs with this bank.  M