Can I open a UK account from Germany?

Q As I am living and working in Germany, I would like to take advantage of the current exchange rate and transfer savings funds to a UK account in preparation for the purchase of a UK property and/or return to the UK in the coming 12-24 months.

Internet accounts appear to offer competitive interest rates and meet my needs for easy transactions but I appear to be excluded from using these due to non-UK residency.

I have an active current account with the NatWest which I use to handle ongoing obligations in the UK and in which some ?50,000 currently resides paying a paltry interest rate. What are the options open to me in order to maximise my return on this saving and for subsequent transfers I would like to make?

JF

A You should not be excluded from internet accounts just because you don't currently reside in the UK. However there may be a problem with money laundering regulations, which require evidence of both your identity and your residence.

I would suggest searching the internet for offshore accounts offered by UK banks or building societies through offices based either in the Channel Islands or the Isle of Man. They pay highly competitive gross interest rates and are used to dealing with non-UK resident savers.

It might well be worth switching the bulk of the money currently held in the NatWest current account to the offshore deposit account, which will pay higher interest without 20% being automatically deducted. You can then transfer some funds to the UK account as and when they are needed to meet any ongoing obligations. While you are living in Germany there will no UK tax to pay on the interest earned in offshore accounts.

Once you move back to the UK there will be no problem in transferring the money back, although there would be a case for retaining the offshore accounts as they offer UK residents the chance to defer payment of income tax on the interest.