Economy Set to Grow While Offshore Interest Rates Look to Stay Low

As was predicted in a recent Reuters poll, after a meeting on the 6th August the European Central Bank (ECB) have announced they will be keeping interest rates on hold at 1 percent. Holding the rates for the foreseeable future is seen to be good news for the European economy in general, but is also great for those with a keen eye on offshore interest rates currently.

The ECB lowered its interest rate to 1 percent (its lowest rate in 11 years) in May this year, after moving it to 2.00 percent in January, 1.50 percent in March and 1.25 percent in April. By comparison, its highest rate of 4.25 percent came into effect way back in June, 2000.

In a press conference following the announcements, ECB president Jean Claude Trichet said: "Economic activity over the remainder of this year is likely to remain weak, although the pace of contraction is clearly slowing down. While uncertainty is still high... and we have to be prepared for ongoing volatility in incoming data, there are increasing signs the global recession is bottoming out. Looking ahead into next year, after a phase of stabilisation, a gradual recovery with positive growth rates is expected,"

The ECB's decision to hold interest rates at 1 percent will also be of interest to those with or considering offshore bank accounts. In a recent Reuters poll of economists and experts, all 75 of those asked predicted that rates would be kept at one percent, with many estimating that they will not be set to rise again until the fourth quarter of 2010.

Of course, if the predictions of those in the Reuters poll turn out to be correct, offshore accounts will begin to look very tempting again especially if UK banks begin to push up rates despite the Bank of England's seemingly comfortable 0.5 percent. However, expats may also be more inclined to consider an offshore account after Sterling's fall when the Bank of England announced quantitative easing on the 6th August, as the Euro stood firm when the ECB said it was holding its rates.

Guernsey - Offshore Banking Centre 2009

Despite their reputation ten, maybe twenty years ago, stringent rules and the emergence of the Organisation for Economic Co-operation and Development means offshore banks are now considered an accessible and viable option for savers whether they are expats or not. For those looking for the best savings accounts in Europe, offshore finance has long been connected to areas such as the Isle of Man and Switzerland - but more recently, Guernsey has also established itself as a contender.

While the financial sector may not yet contribute to the Guernsey economy as much as it does in Switzerland and on the Isle of Man, banks have been beneficial to the development of the Channel Islands since the 60s. Today there are around 55 banks on the island, due as much to its desirable and convenient location, as its low taxes - a statistic that is all the more impressive when one considers its size of 25 square miles. That's an average of more than two banks per mile.

Expat Offshore Savings - Funds for Retirement

As an expat (expatriate) you are in a privileged savings and investing position. Make the most of the options available to you while you can, consider investing offshore for your retirement. While you reside overseas you are legally entitled to make use of any tax savings in the country in which you reside, furthermore you are most likely in a position to save and invest offshore to fund and fuel your retirement.

Not enough expatriates make use of their offshore advantage when living and working abroad. Don’t make the same mistake! Do you already have a domestic pension plan in place from your home country that you established prior to working abroad? Have you found that this policy is not as mobile as you are? Does it make sense to continue with the savings policy?
Have you been considering switching from retirement savings plan to savings plan as you change from country to country? Did you know that by doing this the income you end up with in later life will be fragmented and may be whittled away by foreign exchange costs, charges or even a cash-strapped government?

Short Guide to Offshore Banking in 2009

As we continue through recessionary times, 2009 seems a very unlikely year for many of us to consider depositing our savings into an offshore bank account. However, with speculations abound that a brighter financial future may already be in sight, offshore financial centres are earning a cleaner reputation than they ever have done - and deservedly so. With the continued work of the OECD and other developments in the sector, offshore banking could be argued to be more necessary today than it ever has been.

The OECD (or to give it its full title: The Organisation for Economic Co-operation and Development) is made up of a 30 country membership including the UK, the US and more recently South Korea and Slovakia. Amongst other things, the organisation seeks to maintain financial stability, to coordinate domestic and international policies, and to contribute to growth in world trade.

France - Expat destination for 2009

The phrase ‘expat destination’ tends to conjure up images of one way plane tickets to sub-equatorial paradise islands, or at the very least somewhere where the sun shines every day and an afternoon nap is obligatory. Yet, in the latest poll by halifax-international.com, the most popular destination for British expats is France (with 16 percent of Brits deciding to move there) – a destination that, without deeming it unexciting, is perhaps a little more predictable than I expected.

Yet, of course, this is precisely the reason it is so popular. Once the small matters of the language barrier and driving on the other side of the road are overcome, France is something of a home from home for the British. This is best realised when one visits Brittany, a region that is just a touch more than one hundred miles from the South Devon coast. You don’t even have to be aware of the Celtic heritage of the region to gaze with familiarity at the green rolling countryside and the market towns nestled therein.

Isle of Man Economy Set to Improve by the End of 2009

As around 700 students collect their A-Level results on the Isle of Man, many will be considering their next step - either to apply for university on the mainland or to remain on the island and look for a job. Although the recession is not drawing many youngsters to the prospect of looking for work in the UK, recent developments within the unique Manx economy is causing some commentators to speak quite optimistically about the coming year.

Of course much of the Isle of Man economy is centred around its financial sector, and its offshore interest rates and savings accounts are some of the best to be found in Europe. Its establishment as a major financial centre is due to the island's government proposed incentive to bring business to the island via lower taxes, a proposition that has continued from the mid-sixties to this day.