Return On Deposit

[N47HAN]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

[fletchsmile]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

Should be able to get upwards of 6%, tho' you might want to think very seriously about spreading it over several banks. Not bothering to adjust for compounding as it's only an indicative amount, that's somewhere around GBP 750 upwards a month as an idea on 150k. So somewhere over THB 50k equivalent in baht terms at today's rates

[N47HAN]

thx,

so just to convince the old man thats enough then , without touching his capital

[chiang mai]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

Offshore UK rates currently are excellent - expect 6.85% or better. A general return would be 6.50% but we are in unusual times currently. Good advice to spread your money amongst the top three or four. Check and see if the banks have Depsoit Insurance Protection schemes, most in the Isle of Man do but your limit is £35,000.

[PCA]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

Interest rates on saving accounts are negotiable and with 150k Sterling you should not get lower than 7% a year. But if you think you will pay in that amount and start withdrawing after a month you will most likely not get this rate plus you are taking money from your investment as your interest is not earned yet. Leave the money there untouched for a year and the whole thing looks entirely different. Otherwise you will have to make the calculation with less than 150k, you do the math.

[cmsally]

For monthly withdrawals are the rates that high?

Most saving accts seem to be getting 6.4% or less, or should I be looking somewhere else

Offshore rates

[chiang mai]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

Interest rates on saving accounts are negotiable and with 150k Sterling you should not get lower than 7% a year. But if you think you will pay in that amount and start withdrawing after a month you will most likely not get this rate plus you are taking money from your investment as your interest is not earned yet. Leave the money there untouched for a year and the whole thing looks entirely different. Otherwise you will have to make the calculation with less than 150k, you do the math.

The operative words in the OP were "monthly withdrawals" hence 6.40-6.50 is more realistic.

[BalthazarBeefheart]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

Offshore UK rates currently are excellent - expect 6.85% or better. A general return would be 6.50% but we are in unusual times currently. Good advice to spread your money amongst the top three or four. Check and see if the banks have Depsoit Insurance Protection schemes, most in the Isle of Man do but your limit is £35,000.

The limit is 35000 for onshore uk banks - Under Isle of Man Compensation Scheme I believe limit is 15000 on a maximum of 3/4 of their deposit.

Cheers BB

.

[fletchsmile]

thx,

so just to convince the old man thats enough then , without touching his capital

If someone is planning to live off that for some time. They should also bear in mind among other things:

- Risk of rates going down

- Risk of exchange movements if living in Thailand

- Inflation

- Emergency money

Might be a better idea to try living off say 2/3 of the income to address some of these risks, and build a reserve. There are also peharps more suitable alternative products to generate the income. Tho' you did ask for no other stuff...

[sgunn65]

150,000 Sterling held in a normal bank account,high interest account offshore.

withdrawl 12 times a year ( monthly )

what would be a GENERAL return ?

Have just been asked the question and to be fair cant' give an indicative answer.

Anyone.?

P.S based on someone leaving the uk and moving here with the cash.

Please no other stuff , about do this and do that . This was a question asked to me and really just wasnt sure what the interest would be .

Cheers

Interest rates on saving accounts are negotiable and with 150k Sterling you should not get lower than 7% a year. But if you think you will pay in that amount and start withdrawing after a month you will most likely not get this rate plus you are taking money from your investment as your interest is not earned yet. Leave the money there untouched for a year and the whole thing looks entirely different. Otherwise you will have to make the calculation with less than 150k, you do the math.

Where?? Certainly not in the UK. Interest rates are non negotiable but subject to change. At the moment in the UK one bank is offering 7% on a one year rate. 6.5% is the going rate for income returns. And as long as you are prepared for no income growth you can start withdrawig money from month two.

It is wise to allow for income growth but if you find after a while you can't live on the income only you will have had a blast and still have £150K in the bank. I bet alot of members would like to be in that situation. And yes I know that loads of you are in a much better financial situation and the OP shouldn't dare have the nerve to want to live in LOS without seventy squillion quid, but he just wants the rates so I will stop ranting!!!

[george]

I'm shopping around as well. HSBC in Singapore doesn't look too bad:

http://www.hsbc.com.sg/1/2/personal/deposi...-exchange-rates

[Carmine6]

One way to lock in the higher 1 year rate is:

Take 140,400 of it and lock for 1 year at the 6.95%, split into different accounts for safety and in case one needs to be withdrawn in an emergency. Those accounts will be worth 150,158 in 1 year.

Take the remaining 9,600 and put it in an account at current rates. Then withdraw between 800 and 813 per month. 800 is what would be earned if the whole amount earned 6.4%, and will not exhaust the account except at 0% interest. 813 is the amount that the 140,400 is earning. There will be money left in the account at the end of the year unless rates fall drastically. 345 if only 800/month is withdrawn and rates stay at 6.4%. 188 if 813/month is withdrawn and rates stay at 6.4% If rates do fall drastically, only a small portion is earning less interest instead of all of it.

If rates go up, they have to get over 6.95% for it to have been better to have it all at floating rates.

[chiang mai]

I'm shopping around as well. HSBC in Singapore doesn't look too bad:

http://www.hsbc.com.sg/1/2/personal/deposi...-exchange-rates

If you're looking at AUD I can't comment but if you're in the market for GBP then offshore UK in the Isle of Man is full of interesting deals currently. HSBC anywhere, in my experience, tends to be lower than the rest of the market by some 0.50 to 1.0 bps.

Edited September 21, 2007 by chiang mai

[chiang mai]

I'm shopping around as well. HSBC in Singapore doesn't look too bad:

http://www.hsbc.com.sg/1/2/personal/deposi...-exchange-rates

If you're looking at AUD I can't comment but if you're in the market for GBP then offshore UK in the Isle of Man is full of interesting deals currently.

[h5n1]

Those rates are based on 1 year timed deposit. Youd have to have a years cash on hand plus emg moneyand then ladder your deposits 1-2-3-4-5etc years out

If you are in Sterling, its strong, dont convert to other currencies for peanut propositions.

[fletchsmile]

This account from Abbey may be of interest. http://www.abbey-products.com/product/current-account

Pays 8%. Onshore - but if you are nonresident you could presumably fill in a R45 to receive gross. Not sure if you are earning any other income, but even without R45 you'd get up to around 5k personal allowance tax free.

The 8% requires min balance of 2,500, and to transfer 1,000 a month into it. Doesn't say what the source has to be. But would be easy to leave say 12k in another account with a decent interest rate and feed it each month

Edited September 23, 2007 by fletchthai68

[sleepyjohn]

This account from Abbey may be of interest. http://www.abbey-products.com/product/current-account

Pays 8%. Onshore - but if you are nonresident you could presumably fill in a R45 to receive gross. Not sure if you are earning any other income, but even without R45 you'd get up to around 5k personal allowance tax free.

The 8% requires min balance of 2,500, and to transfer 1,000 a month into it. Doesn't say what the source has to be. But would be easy to leave say 12k in another account with a decent interest rate and feed it each month

It sounded too good to be true so I looked. It says a maximum balance of 2500GBP. What they're on about the 1000 per month I don't know.

BTW my opinion is that if you live in a country and hold other currencies, especially unbalanced amounts of them and more especially having all your assets in one currency, you are in effect a currency speculator. For GBP the Bank of Scotland looks best right now BUT I happen to know Anglo Irish does not hassle you about the ETSD or whatever it's called as long as you show you're outside it's remit that's it. Many banks are anal about form filling whether the BoS is one of them I couldn't say....could anyone else tell me?

Edited September 23, 2007 by sleepyjohn

[chiang mai]

This account from Abbey may be of interest. http://www.abbey-products.com/product/current-account

Pays 8%. Onshore - but if you are nonresident you could presumably fill in a R45 to receive gross. Not sure if you are earning any other income, but even without R45 you'd get up to around 5k personal allowance tax free.

The 8% requires min balance of 2,500, and to transfer 1,000 a month into it. Doesn't say what the source has to be. But would be easy to leave say 12k in another account with a decent interest rate and feed it each month

It sounded too good to be true so I looked. It says a maximum balance of 2500GBP. What they're on about the 1000 per month I don't know.

BTW my opinion is that if you live in a country and hold other currencies, especially unbalanced amounts of them and more especially having all your assets in one currency, you are in effect a currency speculator. For GBP the Bank of Scotland looks best right now BUT I happen to know Anglo Irish does not hassle you about the ETSD or whatever it's called as long as you show you're outside it's remit that's it. Many banks are anal about form filling whether the BoS is one of them I couldn't say....could anyone else tell me?

Commonly known as Feeder and Teaser accounts. You lose the higher rate of interest on the £2,500 if you fail to deposit a minimum of £1,000 per month for twelve months, which incidentally earns a paltry percentage interest.

BOS and form filling? Not too bad. They have a system called "Know Your Customer" which once you get through it you are clear to open and close accounts at will, without the need to supply loads of banal information requests - Have tested the first part and it looks ok but haven't tested the second part yet!

[fletchsmile]

This account from Abbey may be of interest. http://www.abbey-products.com/product/current-account

Pays 8%. Onshore - but if you are nonresident you could presumably fill in a R45 to receive gross. Not sure if you are earning any other income, but even without R45 you'd get up to around 5k personal allowance tax free.

The 8% requires min balance of 2,500, and to transfer 1,000 a month into it. Doesn't say what the source has to be. But would be easy to leave say 12k in another account with a decent interest rate and feed it each month

It sounded too good to be true so I looked. It says a maximum balance of 2500GBP. What they're on about the 1000 per month I don't know.

BTW my opinion is that if you live in a country and hold other currencies, especially unbalanced amounts of them and more especially having all your assets in one currency, you are in effect a currency speculator. For GBP the Bank of Scotland looks best right now BUT I happen to know Anglo Irish does not hassle you about the ETSD or whatever it's called as long as you show you're outside it's remit that's it. Many banks are anal about form filling whether the BoS is one of them I couldn't say....could anyone else tell me?

Think I misread. If it says 2,500 MAXIMUM then it's a waste of time...I've had accounts in the past like this, but they had minimum balances not maximum...