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Are you making the most of your savings?

If you’re an expat who has moved for professional reasons, you want to make sure that you maximise your earnings from any stint overseas and build up a nest egg of savings for you and your family. But it can be tough at times to keep your savings on track – expat life can throw up many unexpected expenses, plus you’re dealing with different tax regimes and income earned in different currencies. So, what are your options?

It can be easy to lose track of your savings as an expat
It can be easy to lose track of your savings as an expatxpat

A fresh approach

Many investors are turning to savings bonds to manage and maximise their earnings. A savings bond offers a fixed rate of interest over a fixed period of time. Alliance Capital offers a guaranteed minimum 33% return on medium- to long-term lump sum investments of US$75,000 with its Alliance Capital Guaranteed 33% + fixed interest savings bonds.

The interest rate is fixed for the entire term and you will also receive monthly income from the interest earned. When the term of the plan ends, you’ll receive your original investment plus interest. The savings bond is low risk, but high yield. Alliance Capital is a branch of Alliance Financial Services, which means you’ll have the financial guarantee of their parent company. Your savings are insured, offering another layer of security, and transparency.

There are different options to suit your goals, whether they be accumulation or income. There is global access, no fees, no taxes and the fund is multi-currency. Alliance offers multiple regulations and registrations throughout the world to suit the investor’s personal circumstances.

How do savings bonds stack up?

Unlike a generation ago, putting your money in a savings account in a bank today is not likely to result in much growth. In Hong Kong, most high street banks are offering rates of 0.5% or less on a savings account. Fixed term deposit rates in commercial banks sit at about 0.15%. Online savings accounts can sometimes offer slightly higher rates, but still not much beyond 1% to 2%. You will also need to factor in account-keeping fees when calculating what the result of parking your funds in a bank account for an extended period will be.

Investing in the stock market can result in significant returns on your original investment – about 7% per annum is the average return – but you need to know what you’re doing. You also need to have plenty of time to be able to monitor your investments. And even if you have the nous and the time, the volatility of the stock market means the risk of losing your initial lump sum investment is quite high.

Meanwhile, there was a time when people would tell you that bricks and mortar was the safest way to grow your money. But the past decade has challenged that perception with the Global Financial Crisis wreaking havoc on housing markets, with many investors losing their savings which had been tied to investment properties.

Find out more

Alliance Capital has a network of more than 10,000 multilingual qualified advisors and brokers throughout the world to offer expats a dedicated private wealth management service. As Alliance Group chief executive Mike Ramsay says, “Alliance Capital Savings has a proven track record supporting the international community and over the last 10 years has established itself as the premier investment vehicle for expats.”

This article was brought to you by: Alliance Capital

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