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What do you do with the savings?

Discussion in 'Teaching abroad' started by eburor, Jul 28, 2019.

  1. eburor

    eburor New commenter

    About to start my first International job. Hoping to save £1.5k GBP per month and this seems very doable on my package. But, what do you do with it? My school offer a system where they will pay part of my salary in GBP to a UK bank account.

    Common advice on this forum is that you should keep your UK bank account open. However, upon checking it seems that most banks will close your account if you try to update your address to a non UK one... So, do you just not tell them? Seems potentially dubious! I do have a stable UK address I can use, but I don't want to go breaking any rules.

    Investment accounts that I have found (Vanguard/HSBC) are only open to UK residents and even though HMRC says that I can pay in to my ISA for the remainder of the tax year my bank (and others) state they aren't willing to accept further payments if I am no longer a UK resident so not sure I'll be able to get away with that.

    NS&I do accept non UK investors but is there anything else? This isn't just an investment problem because I'd like to maintain my credit cards and current accounts so that when I do return I'm not an unknown if I was to, for example, seek to get a mortgage.
  2. PuRe

    PuRe Occasional commenter

    I wrote a long piece but it didn’t post successfully so in short. Use the stable U.K. address, and join the millionaire teachers fb group for investment advice.
  3. Morena123

    Morena123 New commenter

    Just don't tell the bank, or update your address to a UK one you are able to use. My husband and I use my mother's address and maintain several bank accounts and credit cards there. The only difficulty we have is that when we want to use the cards (debit or credit) for online purchases, sometimes there is an additional security step that involves sending a code to a phone number. The bank will want a UK mobile number. We ended up using my mother's mobile number and when we want to use the cards online (which is rare, we just do it from time to time) we have to consider the time difference and make sure my mother is available to forward us the code immediately. Apart from that, no issues. We use online banking to make payments etc no problem. We've also occasionally drawn money here (Thailand) using our UK cards and the bank haven't flagged it as a problem, although I know you're supposed to tell the bank if you'll be out the country.

    We even get offers regularly to increase our credit limits etc. The bank systems are so automated that they just continue treating us as they always have, even though we no longer have salaries paid in and our income into those accounts is much more inconsistent.

    I'm not sure about investments etc but the millionaire guy mentioned above is a very well-regarded source of info.
    Aim4Jannah likes this.
  4. Ne11y

    Ne11y Occasional commenter

    Natwest have let me keep my accounts open with a foreign address, no problem. Can't put any more into my ISA though. First Direct (run by HSBC) also don't have a problem.
  5. the hippo

    the hippo Lead commenter Community helper

    Yes, you simply must keep your bank account in the UK.

    The common advice is that you should use all (or most) of your foreign-earned cash to get some buy-to-let property in the UK. Well, interest rates are pretty awful, so putting it into some sort of savings account is not going to be much good. Other forms of investment (stocks etc.) might be dodgy and I lost a bunch of cash on oil-based investments.

    Yes, the Hallam millionaire guy who is always mentioned is no doubt very pleased with all of the free publicity that he keeps getting on the TES. (When I gave my blog a plug or two, the TES Moderators got very narky with me.)
  6. tj2807

    tj2807 New commenter

    Soon to be teaching maths in the UAE, we have kept our UK bank accounts and changed mailing address to dad's place.

    Any advice on a reliable website to transfer money back to UK without incurring huge fees?
  7. dumbbells66

    dumbbells66 Lead commenter

    Fiona8318 likes this.
  8. rosiecg

    rosiecg Occasional commenter

    TransferWise is pretty good.
    Sloth_91 likes this.
  9. tj2807

    tj2807 New commenter

    Thanks for the advice, are you both using this from the UAE? From the UK their website states "they are not yet able to send AED into GBP but we are working on adding new currencies all the time".
  10. 576

    576 Established commenter

    Buy and read Expat Millionaire by Andrew Hallam.
    You need to be investing for your retirement now that you are not paying into TPS anymore.
    It's also worth considering paying voluntary NI conts too.
    clovispoint likes this.
  11. Wotton

    Wotton Lead commenter

    Strange that all the people who use a relative's address when changing their address for banking purposes while abroad didn't have to have proof that they lived there. I moved house in the uk and had to have proof of address and photo id when I changed address with the bank. My OH had to have a sheet signed/ notarised when he change address in the uk for some isa/investments.
  12. eburor

    eburor New commenter

    Thanks for this. Its nice to hear others are doing this with no problems and I think that's most likely the case. Its just I read about 'common reporting standards' and AI data analysis/sharing and get super paranoid. The mobile phone shouldn't be an issue as I will be keeping my UK number whilst out there and I don't have to pay to receive text messages.

    BTL might be an option in 4-5 years. But the difficulty of getting an expat mortgage would probably require me coming back to the UK to work for a year or two. Also, right now is not a good time for BTL. Regulation changes mean its not as tax efficient as it once was and probably requires a ltd company wrapper nowadays. Historically, people did very well out of BTL because of good house price increases but everything (income to debt ratio plus market prices / transaction numbers) seems to be suggesting that can not continue as it has done over the next 10-20 years. There is also political pressure against LLs, particularly if Labour got in to power, which suggest the outlook is pessimistic rather than optimistic.

    I'm sorry to hear about your stock market loss, but I can't see anything else at the moment that offers a better return than a properly diversified portfolio.

    Does the book talk about mechanics? My understanding is that the book talks about apportioning income (50/30/20 isnt it?) and introduces people to stocks&shares (using trackers rather than managed funds etc) and the risks and return they can expect to receive. I already have a general idea of some of this stuff, my question is more to do with the actual mechanics of which accounts people are currently using from the UK and how they have found them?

    I've changed my address many times with Co-Op, Tesco, TSB and Amex and I've never had to do such a thing. Most I've ever had to do was provide a utility bill for Tesco. I think it also depends on whether you are on the electoral roll.
  13. 576

    576 Established commenter

    Yes the book covers 'mechanics'.
    I told my bank I was moving abroad and I use my parents' address for post.
  14. miranda-s

    miranda-s Occasional commenter

    Both Lloyds and HSBC have been fine with me having an overseas address. Lloyds have been particularly helpful in finding a solution to the issue of needing a code to be sent to a UK phone number in order to make online transactions - they explained to me that when this is required, I should click the link that says something like "I didn't receive the code" (or words to that effect) which would give me a phone number to call, and I can reverse the charges to them to confirm over the phone that I want to make the transaction. It's a bit of a pain, but less than having to get the code sent to someone in the UK.
  15. the hippo

    the hippo Lead commenter Community helper

    This thread is sponsored by Mr. A, Hallam and he would like to thank all contributors.
  16. salamandes

    salamandes New commenter

    Hello Eburor - please send me a private message - I have a similar dilemma to you. Thanks
  17. Powergnome3

    Powergnome3 Occasional commenter

    Just use UAE Exchange - there are many branches. I sent my whole year’s savings (without giving a figure, it was substantial) home for only £12 - way way cheaper than any bank. You just walk in with your ID, UAE chequebook and your UK bank details - takes minutes.

  18. norwichred

    norwichred Occasional commenter

    We moved to Kuwait last Tuesday, and we spoke to the bank before we left thinking they would tell us we had to close our UK account.

    I’m fact they told us we could keep it open if we nominated someone to have access to it, someone trustworthy. They said it was easier if it was someone who banked with the same bank.

    Luckily my sister does so she is now the nominated representative in the UK and her address is on the account.
  19. motorhomer

    motorhomer New commenter

    Anyone buy the FTSE100? How does that do roughly each year on average?
  20. frogusmaximus

    frogusmaximus Occasional commenter

    Dear OP.

    The Hippo is a well respected poster and he is on the money about keeping your UK bank account open. I use my parents address for correspondence now i've sold up and moved overseas.

    But, you need to be more open to opportunity once overseas. Buy to let is not always the panacea it is made out to be: difficult tenants, fees to agents, wear and tear to a place you may consider home at some point and importantly, lack of piece of mind.

    Once overseas my salary was once paid in US dollars but then changed to the local currency (new rules for local businesses employing foreign workers). The latter suited me as I held my money in the local currency and enjoyed their 5%+ interest rates at the bank. Having a local partner, I'm now getting 7% after tax! So, keep an open mind.

    p.s. don't forget to pay some money towards your UK pension and buy shortfall - i think you can pay for any tax year at any time in the next six years or so; its a good investment if you plan to live to 80 or beyond and stops you getting greedy with your additional spending power!

    p.p.s don't forget to see the world! Great to be a saver but enjoy the opportunities that are presented.
    austin_jen and mas_o_menos like this.

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