Nationwide International customers can now decide when they would like to be paid interest on their ...
Nationwide International customers can now decide when they would like to be paid interest on their offshore accounts, without having to open a specific deferred interest account.
Currently investors are paid interest on an annual basis. Now customers can opt to defer this payment to a later date.
Investors who opt to defer will be able to decide how much interest they would like added to their account, and how much to defer. Interest is also paid on the interest that is rolled over to a later date. The deferred interest option is available on all sterling, euro and dollar accounts paying annual interest.
Carl Gandy, managing director of Nationwide International, said: "Our deferred interest option allows our customers much more control and flexibility in their tax planning without tying them to a specific deferred interest account.
"They can decide exactly how much interest they want paid to their accounts, at a date that suits them with no restrictions."
According to Gandy, when used as a tax planning tool, the deferred interest option is particularly beneficial to customers whose income varies from year to year.
They can defer interest in the years they are earning more and can claim their interest in a year they know they will be earning less. Customers looking to relocate to a different jurisdiction may wish to time the receipt of their interest to their advantage.
Customers wishing to take advantage of the deferred interest option can do so by completing an application form or via telephone or internet banking.
Nationwide International has also launched three fixed rate bonds. The rate for all three bonds is 4.85% gross pa or 4.75% gross pa for a monthly interest rate. The minimum investment is £1 and the maximum is £2m.
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