'Low rates may lead to offshore banking increase'

Expats who transfer their money from British banks could be tempted to open an offshore account, according to a bank.

The Halifax recently pointed out that low savings rates offered by banks may encourage Britons to place their investments with other companies.

Michelle Slade, from moneyfacts.co.uk, highlighted figures that reveal many accounts offer just a 0.1 per cent interest.

"Generally I think accounts have been hit by a falling base rate and they've just got to such a really low level," she told Halifax.

"If the rate you are receiving is uncompetitive then you should look to move elsewhere."

The bank suggested that increasing numbers of expats may turn to offshore banking to get a larger return on their international money transfers.

The Telegraph recently encouraged Britons to consider making money transfers to Individual Savings Accounts before they start their new lives overseas.

Click here to make an International Money Transfer.

By Linsey Summers.