Barclays Offshore Account – Don’t Open Without Reading This
Barclays are one of the biggest high street banks in the UK. But did you know there’s a Barclays offshore account?
It offers multi-currency, savings, investments, mortgages and currency exchange.
It is called Barclays International and operates from the Channel Islands.
In this review we’ll take a look at the good and the bad so that you can decide if opening an account with Barclays is the right thing to do.
Onshore vs offshore banking
The first thing to say about Barclays is their onshore and offshore banking operations are pretty different. If you have or had a UK account with them before you moved overseas don’t expect things to operate in the same way they did onshore.
Certain benefits that you enjoyed in the UK may not be available to you, and fees are unlikely to be as low.
And perhaps the main difference is the fact that you need to fund your account with £100,000 and maintain that balance at all times.
That said, the account does come with benefits and though not cheap per se, their fees are certainly not the highest in the offshore domain.
Fees
As you might expect there are lots of fees to consider. I’ve picked some of the main ones expats may encounter below:
- £40/month – If your balance drops below £25,000.
- £15 – International payments
- £6 – Receiving money from outside the UK
- £2.75 – Using your debit card abroad or whenever you don’t pay using sterling
- FX – See below
Offshore currency exchange (FX)
For the latest currency exchange rates, you need to contact Barclays directly at the time when you intend to make a transaction.
They depend on when you make the transaction and how much you have in your account. The more money you have in your account, the better your price plan and so the less you pay.
Savings rates
At the time of writing just 0.01% interest is paid on sterling accounts and unfortunately you can’t get any higher rates than this unless you save in US dollars and have over $5 million in your account and even then it’s just 0.05%!
If you are just looking for somewhere to store your wealth, such accounts may be acceptable, but if your aim is to grow your wealth, you’re probably best looking elsewhere.
I think it’s probably safe to say most expats should be looking to invest their money in shares, rather than settle for such low interest rates in a savings account.
These days you don’t need to be an expert to invest in the stock market, exchange traded funds (ETFs) mean expats can invest easily, cheaply, safely and tax efficiently. (We’ve compared some stock brokers open to expats here if you don’t already have one).
Relationship managers
If you have over £250,000 to invest, you could consider Barclays International Investment Advisor services. However, like with currency exchange, you need to contact Barclays for their current fees and it is highly unlikely that they will be low.
It’s not long ago that expats had to swallow poor investment products and high fees. But, that is no longer the case. As mentioned above, ETFs and low cost stockbrokers have put an end to that.
These days even the most inexperienced investors can put a strong globally diversified investment portfolio together with just a couple of ETFs. (We’ve talked about expat investing in recent articles here and here).
Offshore mortgages
Barclays do offer offshore mortgages. Though they are restricted to purchasing UK property, and are for account holders only, their rates are competitive, so in some cases it may be worth opening an account just for the benefit of being able to take out a mortgage.
Is there a corporate bank account?
International corporate banking is available at Barclays. They offer many of the same services as retail but with a business focus.
There’s less transparency in terms of fee structures, but if you are interested you can find out more about it here.
Positives
- Barclays really do operate globally. If you are lucky you might just find they have a local branch.
- They come with a name you recognise.
- Simple activities like storing and receiving money are adequately handled.
- They offer competitive mortgage rates (for UK property only).
Negatives
- Having to keep a minimum balance of £25,000 in a bank account is going to be inconvenient for many expats to say the least (particularly those who either don’t have that amount or would prefer to invest it).
- Investment products come with higher fees.
- Savings accounts pay very low interest rates.
- Mortgages are only available for UK property.
For what it’s worth my personal take on a Barclays offshore options goes a little something like this. They aren’t the best, but they certainly aren’t the worst either and you do get a name that you recognise which brings a level of trust, which for some people is worth its weight in gold.
If you are somebody who just wants a place with a name you can trust to hold cash then a Barclays offshore account might just be the right choice for you. Even more so if they there is a local branch you can make use of or you would like to purchase a UK property with a mortgage.
(We’ve compared some other banking options here that might be worth a look and for those interested in growing your wealth, we’ve covered stockbrokers open to expats here).
If you think Barclays may be the right choice for your finances, you can open an account here.