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Uncompetitive Offshore Bank Rates / Lack Of Competition


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The Isle of Man finance sector is finished. It's in its death throes.

 

Didn't actually read the article then?

 

nor did i, but while there is dodgy money to launder we'll be safe.

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To be fair, regarding Irish Permanent, as with all Irish banks, they're on their arse at the moment so it's more a case of cost and risk cutting than anything to do with business or potential here. The Irish Govt is pumping cash into them all with great gusto and are now putting the squeeze on all of them to start showing some return and (at least) less exposure...

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Onshore accounts can only be opened by UK residents with a permanent address, so the only option is an account run out of the main offshore centres of the Channel Islands, the Isle of Man and, less so, Gibraltar.

 

It seems almost inevitable that this will change sooner or later. Not as some sort of punitive anti-offshore measure, but because it is crazy for the UK to be turning away business.

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There are Banks in the UK that will open accounts for non-residents. HBOS is one and gives rates better than BOSI on Island http://www.bankofscotlandhalifax.co.uk/savings/nonukcustomerrates.asp

 

Unless you open a time deposit of £50k or more which automatically pays gross interest you need to complete an R105 form

which allows them to pay gross interest on smaller accounts. There are other Banks that will offer accounts as well

such as NatWest, Liverpool Victoria and others. Nationwide of course will not and just refers you back to

Nationwide International in Douglas whose rates and range of accounts are far worse than its parent company. You need to

bear in mind UK probate and estate tax issues if keeping funds in UK banks

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Give it 6 months and an interest rate rise - and things will change again rapidly in our favour (except for mortgage payments of course).

What factors will make the IOM more competitive in terms of rates than UK ?

 

You need to

bear in mind UK probate and estate tax issues if keeping funds in UK banks

The Conservatives were moving towards abolishing death duties, certainly upping the thresholds significantly. The Liberals disagree. The financial crash, the govt deficit, and the coalition govt probably helps IOM from that perspective.

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The Irish Govt is pumping cash into them all with great gusto and are now putting the squeeze on all of them to start showing some return and (at least) less exposure...

 

Its more than that. As you say the Irish Government are pumping money in and in doing so are basically dictating that they mend their grotty tax dodging ways by shutting their offshore branches and subsidiaries. Those who accept state support have no option but to assist in seeing through state objectives at the end of the day. The Irish government has been fed up with its own tax dodgers for years; now that Ireland's banks need their cash they can basically dictate the shape aand activities of these businesses for the next 10 to 20 years.

Edited by oldmanxfella
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The Irish Govt is pumping cash into them all with great gusto and are now putting the squeeze on all of them to start showing some return and (at least) less exposure...

 

Its more than that. As you say the Irish Government are pumping money in and in doing so are basically dictating that they mend their grotty tax dodging ways by shutting their offshore branches and subsidiaries. Those who accept state support have no option but to assist in seeing through state objectives at the end of the day. The Irish government has been fed up with its own tax dodgers for years; now that Ireland's banks need their cash they can basically dictate the shape aand activities of these businesses for the next 10 to 20 years.

Do you think it's as severe as that? I didn't know that. I'm in the finance sector and haven't heard anything as stark as that. I know they (Irish Govt.) have been pissed off with offshore banking in the past but with the IFSC they as good as joined in. All the other Irish Bank Offshore branches are still in Douglas aren't they? AIB, Bank of Ireland, Anglo Irish etc etc. Is there any 'word on the street' circulating about any of them? AIB have been in trouble but I believe they're climbing back... And Anglo Irish... Well...

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The Irish Govt is pumping cash into them all with great gusto and are now putting the squeeze on all of them to start showing some return and (at least) less exposure...

 

Its more than that. As you say the Irish Government are pumping money in and in doing so are basically dictating that they mend their grotty tax dodging ways by shutting their offshore branches and subsidiaries. Those who accept state support have no option but to assist in seeing through state objectives at the end of the day. The Irish government has been fed up with its own tax dodgers for years; now that Ireland's banks need their cash they can basically dictate the shape aand activities of these businesses for the next 10 to 20 years.

Do you think it's as severe as that? I didn't know that. I'm in the finance sector and haven't heard anything as stark as that. I know they (Irish Govt.) have been pissed off with offshore banking in the past but with the IFSC they as good as joined in. All the other Irish Bank Offshore branches are still in Douglas aren't they? AIB, Bank of Ireland, Anglo Irish etc etc. Is there any 'word on the street' circulating about any of them? AIB have been in trouble but I believe they're climbing back... And Anglo Irish... Well...

 

Its not just the Irish Government's political agenda either:

 

http://news.bbc.co.uk/1/hi/business/10214441.stm

 

Northern Rock's banking operation in Guernsey is to close on 2 September 2010, the bank has announced. Some 6,000 customers have already received letters giving them three months' notice to close their accounts.

 

You can't take the taxpayers cash and then carry on offering great rates to tax dodgers and people who don't pay tax in the country paying to run the bank.

Edited by oldmanxfella
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