UK Savings Account(s)

Hi everyone,

My wife and I are US citizens and have been living in the UK since 2016. I became a US citizen through naturalisation while living in the US with her. but I am originally from the UK. Each year we file our tax returns and complete the relevant FBAR(s), reporting our financial accounts.

Since we have moved back to the UK (with interest rates being so low), I have paid very little attention to where I kept my savings. Obviously things have now changed.

After reading through the different options available to us (thanks Martin Lewis) - I had looked at the likes of Stock and Shares ISA's, but very quickly read that Vangard for example, will not allow US citizens to invest. I also read that S&S ISA's are also very tricky for overseas US citizens to report and can be an absolute minefield.

As a result of this, I began looking at NS&I's today - There is currently a 1 year fix at 6.2% which seems attractive (Rather than having my money sitting in my current 2% account).

I was just wondering if ... as a US citizen and someone that has to file US tax returns (and FBAR) each year ... that I am 1) allowed to open an NS&I, 2) would the tax return obligations for an NS&I be complicated/difficult? or 3) is it just a matter of treating an NS&I like a reguar savings account and simply adding that account to my FBAR reporting.

Thanks!!!!

My wife and I are both dual citizens living in the UK and we do have NS&I savings accounts as well as a cash ISA.  We report those accounts on our annual FBAR and declare the interest from them as interest on our IRS returns each year.

Thank you so much - it is always my fear of signing up to a product that is going to make my reporting extremely difficult.

Just curious if you would recommend any other products instead of an NS&I - it seems to have the highest interest for a 1 year fix.

Thanks!

Thank you so much - it is always my fear of signing up to a product that is going to make my reporting extremely difficult.

Just curious if you would recommend any other products instead of an NS&I - it seems to have the highest interest for a 1 year fix.

Thanks!

I'm lazy - I'm sure there are better rates out there but every new bank means a new addition to FBAR and associated tracking of largest balance.  NS&I rates are not too far behind most I think.

I like NS&I because it is backed by the UK treasury up to £1m and is also very easy to use, putting money in or out online from my laptop.

Thank you so much - it is always my fear of signing up to a product that is going to make my reporting extremely difficult.

Just curious if you would recommend any other products instead of an NS&I - it seems to have the highest interest for a 1 year fix.

Thanks!

The moneysaving expert forum is great for discussion of the latest available products.

https://forums.moneysavingexpert.com/categories/savings-investments

Of course it's all from a UK perspective so as durhamlad points out, you'd also need to consider everything from the US reporting angle too.

Some of the other FFI won’t allow U.S. Persons. NS&I have no problem with this though and have an easy sign up when asking for SS or ITIN. They offer very good rates though and if you have over £85k, it’s a safe place to be, (full U.K. Treasury  backing as durhamlad says)

The moneysaving expert forum is great for discussion of the latest available products.

https://forums.moneysavingexpert.com/categories/savings-investments

Of course it's all from a UK perspective so as durhamlad points out, you'd also need to consider everything from the US reporting angle too.

Apologies I didn't get a notification that you had replied to my comment!!

Thank you so much - I will definitely check it out. I had never thought of going through their forums - I normally tend to read their blogs just.

Some of the other FFI won’t allow U.S. Persons. NS&I have no problem with this though and have an easy sign up when asking for SS or ITIN. They offer very good rates though and if you have over £85k, it’s a safe place to be, (full U.K. Treasury  backing as durhamlad says)

Oh really! I did not know that NS&I's would ask for my SSN! Is that part of the sign up process??

Yea the main thing I'm looking for at the minute is a good rate - considering what my current bank is giving me!

Oh really! I did not know that NS&I's would ask for my SSN! Is that part of the sign up process??

Yea the main thing I'm looking for at the minute is a good rate - considering what my current bank is giving me!

All banks and building societies ask about tax status. FACTA & CRS. Many simply will not work with Americans and their sign up process filter questions will swiftly decline you. NS&I will allow USC's, although they'll want SS/ITIN, a painless process... When looking for a good % rate, first look if they will on-board you by reading their T&C's/summery.

All banks and building societies ask about tax status. FACTA & CRS. Many simply will not work with Americans and their sign up process filter questions will swiftly decline you. NS&I will allow USC's, although they'll want SS/ITIN, a painless process... When looking for a good % rate, first look if they will on-board you by reading their T&C's/summery.

I suppose I haven't signed up to any new bank here since I became a US citizen. While living there, I still had my current account/savings account with the same bank since I was 16 ... when I moved home as a US citizen, with savings rates being so slow, I haven't felt the need to shop around (until now). I actually think my current bank has no idea that I have US citizenship - though I do report all the accounts on my FBAR.

Can I ask what CRS is? And by "if they will on board" ... do you mean, allow me to sign up?

Thanks!

CRS stands for Common Reporting Standards, effectively an equivalent to FACTA. Yes your tax status will be questioned when you sign up/make an application.

CRS stands for Common Reporting Standards, effectively an equivalent to FACTA. Yes your tax status will be questioned when you sign up/make an application.

Thank you!

Aaahh so CRS is a global thing from what I can see (I assume it is linked to US citizens overseas)!

Appreciate the help! I have never had to compete any form linked to FACTA (8938) due to filing jointly and the threshold being $400,000 in financial assets.

At least that is what the expat tax return companies have told me!

Appreciate the help! I have never had to compete any form linked to FACTA (8938) due to filing jointly and the threshold being $400,000 in financial assets.

At least that is what the expat tax return companies have told me!

That is correct.

Here is the full text from the IRS website.

https://www.irs.gov/businesses/corporations/summary-of-fatca-reporting-for-us-taxpayers

Taxpayers living abroad.

You must file a Form 8938 if you must file an income tax return and:

You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. These thresholds apply even if only one spouse resides abroad. Married individuals who file a joint income tax return for the tax year will file a single Form 8938 that reports all of the specified foreign financial assets in which either spouse has an interest.
You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.

Well.....glad I read this post just now. We have been spreading money around in various banks to stay inside the £85k limit......if we can get a decent bit of interest with NS&I we might just move it there.....if for no other reason to make my US taxes easier.

Well.....glad I read this post just now. We have been spreading money around in various banks to stay inside the £85k limit......if we can get a decent bit of interest with NS&I we might just move it there.....if for no other reason to make my US taxes easier.

Yes, when we moved back in 2016 and was moving money over to buy a house then NS&I wasn't allowing USCs so I also was spreading the money around in multiple banks trying to keep under the £85k limit.