
Offshore Bank Accounts
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Offshore current accounts hold your funds offshore in a different currency – for example in euros or dollars. Start your comparison below.
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Eligible deposits with offshore banks are protected by a relevant compensation scheme. Read our or FSCS guide that explains more.
DisclaimerAll rates subject to change without notice. Please check all rates and terms before investing or borrowing.
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The frequent handling of a currency that is different from UK Sterling is one of the primary reasons why people use offshore current accounts. The ability to deal in euros, dollars or another currency, means that the account holder can make and receive payments easily and quickly in that currency, whereas paying in a currency that differs from pounds and pence in an ordinary UK current account will likely attract both fees and potential losses from volatile exchange rates.
Offshore banking facilities are offered by many of the largest UK banks and some more specialist providers. These banks are separate companies that operate in the crown dependencies of the Channel Islands, Gibraltar or the Isle of Man. An offshore bank account will usually have all the facilities and features of an onshore current account, such as an overdraft and a debit card.
However, you should be aware that some accounts:
Please note, it is not possible to avoid paying tax by banking offshore. As with standard savings accounts, interest earned on offshore accounts is paid without any tax deducted. While the Personal Savings Allowance means basic-rate taxpayers have no tax to pay on the first £1,000 of interest, and higher-rate taxpayers will have no tax to pay on the first £500, interest earned above these thresholds will still be taxable, whether it’s from an offshore account or not. You must declare any savings interest earned to HM Revenue and Customs (HMRC) on a self-assessment tax form and pay tax on it in due course. If you don’t, HMRC are likely to come calling with a considerable fine.
Find out where an offshore bank is registered, and its relevant compensation scheme, in our depositor protection scheme guide.
Offshore accounts tend to have quite restrictive eligibility criteria and customers should be extremely careful as to where the account will be held due to the differences in depositor protection limits. For accounts here in the UK, your monies are covered to the sum of £85,000 per person per provider under the Financial Services Compensation Scheme, should your bank or building society fail. However, accounts in the Channel Islands and the Isle of Man have a sum of only £50,000 covered. Accounts held in other countries will be subject to their own rules – which can be a lot less than the UK standards.