Where would you put your money?

[mint]

Bigears, I am looking but do want an absolute bargain (don't we all).  Don't really want to sell present house.

Just would like somewhere to put some money for 2 or 3 years.  Estate Agent tells me he can get tenants for our house.  Don't really want to let it either.

Happy to buy something and hang on to both houses for a while.  Don't like the thought of money in the UK that is making zilch in terms of interest and is in effect worth fewer and fewer euros.

Someone on another thread inherited a house and is looking for somewhere to put his money.  Looks like there are a quite a few people who really want to do something to protect their dosh whilst they still have some left!

[bigears]

good for you sweet17,  make good decisions now reap the rewards later.  Your 2-3 years, presumably for the market to recover may have to be extended.

[Glyn]

I have alrady lost money that was 'safe' in the IOM, and the 50k compensation scheme is worth next to nothing. It only lasts until next October, there is no money in it and any money that is collected is likely to have to compensate the Kaupthing depositors so there will not be anything left if another bank goes under.

[parsnips]

[quote user="Glyn"][quote user="Russethouse"]

I'd have a good look through this : http://www.moneyfacts.co.uk/

I recently found that being tied in for just 3 months gave better interest.... but that was 2 months ago......worth doing some homework...

[/quote]

 

Russethouse,

All those accounts are UK based. Has anyone on the forum found a way of opening a UK savings account if you are not a UK resident? I would desperately like to find a safer home for what money I have left having lost money with Kaupthing IOM and Landsbanki Guernsey.

[/quote]

Hi,

   Nationwide International Isle of Man is guaranteed by it's UK parent--worth googling for details.

[suein56]

[quote user="parsnips"] Nationwide International Isle of Man is guaranteed by it's UK parent--worth googling for details.  [/quote]

Ditto,  A&L seems to be guaranteed in a similar way as I understand it.

Sue

[allanb]

There may be exceptions, but generally offshore affiliates of UK banks offer (a) savings accounts for non-residents, (b) interest paid or credited without withholding tax, and (c) some kind of backing from the UK parent bank - but read the small print.

Most of them also offer a choice of currency, if that's of any use to you.

[Quillan]

If you have a spare house then rent it out via a Housing Association. The rent is a little less than using an agent but its guaranteed every month even if they don't have a tenant. They completely redecorate the house (including carpets if required) when the end of the agreement is up normally between 3 and 5 years. We did it ounce and at the end of the period is was in outstanding condition and a lot less of a headache than either doing it myself or using an agent. I would do it again.

[Glyn]

[quote user="parsnips"][quote user="Glyn"][quote user="Russethouse"]

I'd have a good look through this : http://www.moneyfacts.co.uk/

I recently found that being tied in for just 3 months gave better interest.... but that was 2 months ago......worth doing some homework...

[/quote]

 

Russethouse,

All those accounts are UK based. Has anyone on the forum found a way of opening a UK savings account if you are not a UK resident? I would desperately like to find a safer home for what money I have left having lost money with Kaupthing IOM and Landsbanki Guernsey.

[/quote]

Hi,
   Nationwide International Isle of Man is guaranteed by it's UK parent--worth googling for details.
[/quote]

 

So was Kaupthing. Look where that got me. Has anyone seen the guarantee, is it legally binding, is it really a guarantee or just a letter of comfort?

These are all questions that people should be asking when depositing money offshore.

[mint]

[quote user="Quillan"]If you have a spare house then rent it out via a Housing Association. The rent is a little less than using an agent but its guaranteed every month even if they don't have a tenant. They completely redecorate the house (including carpets if required) when the end of the agreement is up normally between 3 and 5 years. We did it ounce and at the end of the period is was in outstanding condition and a lot less of a headache than either doing it myself or using an agent. I would do it again.qu[/quote]

Quillan, do you mean a Housing Association in the UK or in France?  Could you give brief details of how you approach these people, whether all types of houses/appartments are acceptable and generally what pitfalls there might be, etc.

If you prefer, I could PM or Email you?

Thanks, Q!

 

[Gastines]

Ref my point about HSBC. Sue 's post said only if you have previous account. Not so. After having hopeless service from Halifax and HBOS we took our five bob out,sold the shares at just under £10, and went to about 7 or 8 banks and building societies in Bournemouth's main street. Same enquiry,"No UK address,French tax resident, what can you offer". From memory I think in 4 we got fed up with waiting for anybody to serve us, then went into HSBC and they said no problem,suggested Premium account. 5.25% and filled in tax free forms. Debit cards etc can be used anywhere and HSBC branches in most major towns. 24 hr phone service etc.

I will be having a scout around in UK in a few weeks time to see what's happening or on offer.

HSBC Isle of Man did not offer the same deal or protection.

Regards.

[Maricopa]

[quote user="Quillan"]If you have a spare house then rent it out via a Housing Association. The rent is a little less than using an agent but its guaranteed every month even if they don't have a tenant. They completely redecorate the house (including carpets if required) when the end of the agreement is up normally between 3 and 5 years. We did it ounce and at the end of the period is was in outstanding condition and a lot less of a headache than either doing it myself or using an agent. I would do it again.[/quote]

Whilst all this is true in principle, in practice it is not the trouble free route it would appear to be.  We bought a flat as a buy to let.  After a couple of years with one agent, when that tenant left we decided to try the Housing Assocaition route.  We had two years of hell, as did all the other tenants in the block, their job is to house people, and they are generally people you would n't choose as tenants.

We now happily let through an agent again.

Be very very careful.[:(]

[suein56]

[quote user="Gastines"]

Ref my point about HSBC. Sue 's post said only if you have previous account. [/quote]

To be fair to me that's not what I said ...

[quote user="Gastines"]

then went into HSBC and they said no problem,suggested Premium account. 5.25% and filled in tax free forms. Debit cards etc can be used anywhere and HSBC branches in most major towns. 24 hr phone service etc. I[/quote]

Sounds an interesting account. I will have to look it up as, from your description, it sounds as though it is a sort of current/savings account combined. We did not open a Nationwide account before leaving the UK so are on the lookout for something more suitable than the UK current account we are left with.

Sue

 

 

[Gastines]

I'm a workman not a Financial Advisor but HSBC also do a 6month and 1 year high interest bond. Capital as secure as it can be.£50K was 5% Pa for 6 months and 1 yr was5 1/2% PA. You can also have more than one and as we have found in France it is beneficial to have Joint accounts as Mr.A  or Mrs A.,not Mr. & Mrs A.  The advantage in France is that you can then have 2 Epargne accounts and if you partner passes away you can still withdraw cash. Presuming you trust your partner?

However I do think that if you have cash in hand and are not too reliant on the interest,now might be the time to make a very short offer on UK or UK owned property. I note in the Bournemouth Echo today that in Poole they built 115 flats to sell from £200k -£500k. have only sold 11 and are now on offer MINUS 30%.

Regards.

[Owen]

I am not a financial advisor. Wherever you place any money I would have thought safety is the paramount consideration at this time. Do not sacrifice quality for a scrap of extra yield. Remember the Icelandic banks. Ignore the professional advisors who state or imply that cash is trash. Keep hold of the stuff because you will be able to purchase more as the recession deepens. The yield on a 3 months US Treasury Bill is

hovering at around 0.01% (and that is the annualised yield). Earlier this week I month Treasury bills were gobbled up even though there was no yield at all. If we are in for a repeat of the 1930s then expect the 3 month T Bill to slump to 0.001% (which it did in 1938). If your money is on deposit with a bank make sure it is with the biggest and best and in jurisdictions that offer the best protection. This effectively rules out all the UK offshore islands.

Regards

Owen

[Slippery Sam]

"This effectively rules out all the UK offshore islands.

"

Explain

[Scooby]

Pretty much all UK offshore deposit takers are owned by larger banks, many of whom operate in the UK.  The ODT is covered by a guarantee from the parent entity.  This means that the offshore entity is no more risky than its parent.  Further, the offshore regulatory authorities (GFSC, FSE etc) have more stringent regulatory capital requirements than their mainland counterparts (who have more flexible risk assessment under BASEL II).  

[Gastines]

But do the Offshore accounts have the same guarantees? When HSBC were suggesting we banked via Isle of Man, I noted in the small print that only £15K and not £50K was covered. It does seem as though these tax havens are about to get a sort out as the Governments realise how much tax they are losing. I expect a lot of Bankers and M.P's will be moving their money shortly.

Regards.

[Gastines]

Just reread my old posting,2 above, and it shows how quickly rates change.What was offered on £50k per 6 months is now down to 2 1/2 % from 5 1/2% .

[Slippery Sam]

£50 k protection from the IOM Gov's depostors protection scheme   http://www.gov.im/fsc/investor/dep_comp.xml

Not sure what you mean by having a sort out. The UK itself is a tax haven so please explain.

[allanb]

[quote user="Scooby"]Pretty much all UK offshore deposit takers are owned by larger banks, many of whom operate in the UK.  The ODT is covered by a guarantee from the parent entity.  This means that the offshore entity is no more risky than its parent. [/quote]Suppose a UK bank has a subsidiary in Jersey, for instance, and suppose that it guarantees the liabilities of the subsidiary.  Then it will have actual liabilities to its own customers (depositors) and also contingent liabilities to its subsidiary's customers if the subsidiary fails.

Does the UK government's deposit guarantee apply to both of these?  The Jersey customers are not depositors of the parent bank.  I'm not saying they wouldn't be covered by the government guarantee - I just don't know. 

[Glyn]

Isle Of Man Depositor Compensation Scheme is all smoke and mirrors. No standing fund and already having to find money to pay out Kaupthing, Singer & Friedlander depositors. £50,000 compensation limit will be reduced back down to £20,000 in October.

Guernsey have just introduced a so called compensation scheme but as they have already stuck two fingers up at the Landsbanki depositors who have lost there savings I would not trust them one inch.

[Jo]

Best Idea?........Under the mattress[:-))]

[AnOther]

For those still UK resident Zopa offers possibilities. It's been said that they are oversubscribed which could be because too many people are trying to make money out of it or the quality of potential borrowers is poor - or both - but I don't know whether that is the case or not.

Interestingly (ha) they pay interest net of tax which may hold some appeal to non linear thinkers [Www]

[Salty Sam]

Having gone through the trauma of investments with the Icelandic Banks, plus the slowing down of the property market, we've taken the decision to invest in the only thing which appears to be holding its price well - agricultural land and forestry.