#  >  > Living And Legal Affairs In Thailand >  >  > Doing Things Legally >  >  60,000 pounds- best savings account

## mad_dog

I've come into a bit of property and cash. The cash part will be around 60,000 pounds. I want a safe long term savings account that pays a nice monthly or quarterly interest payment. My intention is not to spend any of the lump sum but transfer the interest into my Thai bank account to give me a bit of extra spending money while leaving the actual capital intact. 

I'm a youngster and I'm not well versed in personal finance (I've lived in Thailand most of my adult life and have never even filled in a tax return form) so please humour me. 

I have been looking at a A scottish Widows Deposit account which will give me a Gross interest rate of 5.66 % and a Annual Equivalent rate of 5.29 %. . I can access the money at anytime and the interest is paid monthly. However I'm not really clear on the difference between these two types of interest which one will I actually recieve?

As I am looking not to spend the actual capital and just enjoy a little bonus interest payment each month I reckon this account is for me. 

Does anyone else have a similar arrangement? Are their any major pitfalls to my plan?

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## mrsquirrel

I have a halifax saver account that I got online. Pretty good interest rate.

I looked into an HSCB ofshore account but the interest rates were crap.

Why not just buy a brick of gold and stick it in a safety deposit box for ten years.

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## Spin

I have a similar amount in cahoot.com paying 5.25&#37;.
I just opened an account here: Icesave - 5.70% AER easy access online savings account
Icesave pay 5.7%.
You can keep track of best accounts here: MoneySavingExpert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more

The best account at the moment is with Alliance and Leicester, direct saver account pays 5.8%. Dont tell them you live in Thailand, I did and they refused me an account evenb though i maintain a uk address.....a55holes

To get your interest paid tax free you need to send the bank an R85 form which is very simple to fill out.
For tax returns perhaps best to get an accountant take care of that once a year to be safe and sound, should only cost you 50 quid or so.

60 grand will give you about 20,000 baht per month extra cash, very nice indeed :Smile:

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## mad_dog

> I have a similar amount in cahoot.com paying 5.25%.
> I just opened an account here: Icesave - 5.70% AER easy access online savings account
> Icesave pay 5.7%.
> You can keep track of best accounts here: MoneySavingExpert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more
> 
> The best account at the moment is with Alliance and Leicester, direct saver account pays 5.8%. Dont tell them you live in Thailand, I did and they refused me an account evenb though i maintain a uk address.....a55holes
> 
> To get your interest paid tax free you need to send the bank an R85 form which is very simple to fill out.
> For tax returns perhaps best to get an accountant take care of that once a year to be safe and sound, should only cost you 50 quid or so.
> ...


Thanks heli my man. I guess the R85 form is from the Inland Revenue. Can you download the form off their website?

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## Tchiowa

Will you be buying a new dress and a shave with your new found wealth ?

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## mad_dog

> To get your interest paid tax free you need to send the bank an R85 form which is very simple to fill out.


Wicked. done and done. I just hope they don't check to see that I am actually in the country....

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## Butterfly

QH is paying a 7&#37; dividend yield this month if you are interested

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## beware of the dog

If you want to maintain the lump sum, only remove interest paid above the percentage level of inflation.

i.e. interest 5.5&#37;, inflation 3%, remove 2.5%

Otherwise the fund will shrink due to the time value of money.

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## Spin

^ good point but after being away for 2 years and now back in Uk for a holiday i'll be damned if things are ONLY 5&#37; more expensive. Its more like 10% PA in the real world i reckon.

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## danbo

> I have been looking at a A scottish Widows Deposit account


Get your own!....._sorry I couldn't resist.

_You could stick 30K into Premium Bonds (although you may have to legally be a resident in the UK to own these).  You are guaranteed no return and the 30K will gain no interest; but unless you are the unluckiest person in the World you will expect to win small prizes (50 quid) regularly; and each month you are in for a chance of 1 million.

Website: National Savings & Investments - Premium Bonds

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## mad_dog

> Originally Posted by mad_dog
> 
> 
> I have been looking at a A scottish Widows Deposit account
> 
> 
> Get your own!....._sorry I couldn't resist._
> 
> You could stick 30K into Premium Bonds (although you may have to legally be a resident in the UK to own these). You are guaranteed no return and the 30K will gain no interest; but unless you are the unluckiest person in the World you will expect to win small prizes (50 quid) regularly; and each month you are in for a chance of 1 million.
> ...


I've got a grand or two in Premium bonds... They are a bit of fun for old people with bad financial planners... My grandmother gave me mine. But the odd 50 quid check did give me a few banging nights out as a teenager.

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## kingwilly

^ I'm glad u understand that.

mate - cash is the safest sort of investment, and therefore the lowest yielding.......

if i were you i'd leave 10K cash in a bank account to earn poxy interest and exist as a emergency supply,

put the other 50K into something more heathy, if you wish to be conservative you can buy 10 or 20 bluechip stock companies, the dividends alone will more than likely surpass any interest on cash that you'd ever make. 

plus you'll get capital growth, 

to really do it properly reinvest all your dividends into the same......

if you've just come into the property and cash I'm assuming it something like an inheritance, 

presumably you were surviving before you come into this money? so why not continue normal life and allow this to start/boost a retirement fund for yerself....

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## mad_dog

> presumably you were surviving before you come into this money? so why not continue normal life and allow this to start/boost a retirement fund for yerself....


 I hope to save the cash for a rainy day but I am little hesitant to invest in things I don't really fully understand . A lot of financial advisers are full of shit. My dad has four private pension schemes and two of them were so badly managed they actually lost him money. If some fool invested and lost my money in a dot.com bubble type fiasco I would be round to his offices with my shotgun. 

As i said before this is my first foray into personal finance and something like 4.8 interest per month is easy for a country boy like me to understand.

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## danbo

> I've got a grand or two in Premium bonds... They are a bit of fun for old people with bad financial planners.


hehe....

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## kingwilly

> Originally Posted by kingwillyhggtb
> 
> 
>  
> presumably you were surviving before you come into this money? so why not continue normal life and allow this to start/boost a retirement fund for yerself....
> 
> 
>  I hope to save the cash for a rainy day but I am little hesitant to invest in things I don't really fully understand . A lot of financial advisers are full of shit. My dad has four private pension schemes and two of them were so badly managed they actually lost him money. If some fool invested and lost my money in a dot.com bubble type fiasco I would be round to his offices with my shotgun. 
> 
> As i said before this is my first foray into personal finance and something like 4.8 interest per month is easy for a country boy like me to understand.


 
fair enuf then. tho i did mean investing directly in companies and blue chip means strong solid companies not pension schemes or dot com specualtions.

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## mad_dog

> Originally Posted by mad_dog
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by kingwillyhggtb
> ...


 ic ic ic. I didn't kow what blue chip companies were.  :Wink:

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## mad_dog

> If you want to maintain the lump sum, only remove interest paid above the percentage level of inflation.
> 
> i.e. interest 5.5%, inflation 3%, remove 2.5%
> 
> Otherwise the fund will shrink due to the time value of money.


 Yar. thanks for that.

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## dirtydog

Eden Club 2 is awaiting to be opened in pattaya, and it just so happens I have a can of yellow paint and a brush  :Smile:

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## barbaro

Mad_Dod,

Seems sharp because he's seems patient and can wait to find out where to put this money.

Cash is the safest.  

And while in cash you can read up and ask questions to people that _know_.

Yes, most "financial planners" are full of shite.

They are salesman...useless.

If you do the right thing (you said you were "young.") you can really beneficit from the cash you have now....and more importantly....in the future.

Others will be slaving away while you are....watching.  :Smile:

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## Diverse

Just found this on the internet for you mate:  hmrc.gov.uk/forms/r85.pdf

Cheers Diverse

Sorry Cannot link it yet as do not have 10 or more posts  Just put  in front of it the normal double you three times

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## forreachingme

4.8 % interest per month is great !

was it not per year ?? what would sound more realistic for a safe investment...

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## mad_dog

> Just found this on the internet for you mate: hmrc.gov.uk/forms/r85.pdf
> 
> Cheers Diverse
> 
> Sorry Cannot link it yet as do not have 10 or more posts Just put in front of it the normal double you three times


 Cheers mate I filled one out beofre i left the UK again.  :goldcup:

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## mad_dog

> 4.8 % interest per month is great !
> 
> was it not per year ?? what would sound more realistic for a safe investment...


 Its 4.8 per year if you take it in monthly installments and 4.9 or so if you take a lump sum once a year.

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## mrsquirrel

MD my halifax savers account (online) is paying 5&#37; or 5.5%.

If you are in the UK open one up then register as living overseas with one of those tax form things.

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## oldgit

_Premium Bonds, are they worth it?  June's draw is another '5 x &#163;1 million wins' special and the closing date to buy is 30 April.  So I thought I'd remind you_

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## mrsquirrel

MD
I opened up a Halifax Share Save account last night,

I intend to put x amount into shares every month. You could always use you interest payments from your account to buy your shares everymonth.

I was reading about companies such as IBM who have a DRIP system - I think it works that you effectively buy parts of shares if you don't have enough to buy a whole one. You can put money in every month like a bank account but it's in shares.

I chose the option on the Halifax account to reinvest the dividend payments rather than cashing them out.

This is from one amatuer to another. I'm sure that I will be flamed by others for this but fuck-it it's only Williams forum.

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## William

^MrsQ - did you have to give a UK address on that?

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## mrsquirrel

Yes.

I still have a UK address. I my contracts are only one year long so apparently I'm still resident there. Bank account is registered there as well.

Am I being naughty William? They had an option for non-UK residents as well.

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## mrsquirrel

Dividend Reinvestment Plan
DRIP companies

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## William

^don't know mate, but not having a UK address often fcks my plans up

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## mrsquirrel

Have a look at the Halifax Online - UK Banks, Finance, Telephone & Internet Banking

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## oldgit

This chap gives good advice on different banks ind investing, give him a try, its free.
*www.moneysavingexpert.com/tips*

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## Sanuk Canuk

If possible make sure you move the money offshore to avoid paying tax. Next as others mention inflation is running at 2-3&#37; over the last number of years so be sure to deduct that of the top of any return. I would suggets taking a portion of it (like the 10k previously mentioned) and put that into an offshore interest bearing account. Take the rest and by exchange traded funds. They are like pasively managed mutual funds with minimal management expence ratios and no loads. Also if you are unable to put your investments in tax free offshore acounts ETF's (exchange traded funds) are the most tax efficient way to invest outside a tax sheltered account.

Don't forget that risk is a time sensitive issue....going with ultra low risk investments simply garuntees you will lose over time. If your time investment horizon is short then you may want to go with "safe" low return investments but if you are a long way from retirement you should have a significant equity exposure in your portfolio.

Just my 2 cents....if everything I just said sounds like greek to you, go see a professional money manager.

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## Spin

Icesave - 5.70% AER easy access online savings account have just upped their Easy Access Account interest rate to 5.95&#37;AER

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## rubbajohnny

In recession cash is king as all prices and assets get cheaper
Hong Kong travel cheques are almost as good as the currency is rising with the kwai
Gold blocks are great until you want t o buy some salmon and have to shave off a few grains

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## Spin

> Icesave - 5.70% AER easy access online savings account have just upped their Easy Access Account interest rate to 5.95%AER


BANK-rupt!    :rofl:   :rofl: 

Things do change quickly dont they! :Smile:

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