The Dangers of Holding Money in Foreign Bank Accounts

23rd July 2025

For many UK savers frustrated by low interest rates, the idea of opening a foreign bank account can seem appealing.

Perhaps a bank overseas is offering rates that far exceed anything available in the UK. Or maybe it feels safer to move money out of the country given rising public debt and inflation concerns at home.

But while holding money in a foreign bank account might sound smart on paper, in reality, it can expose you to a range of risks—some of which could end up costing far more than any extra interest earned.

In this video, we explore the often-overlooked dangers of saving abroad, including currency risks, political instability, double taxation, capital controls, and tax liabilities back in the UK.