Would you still look overseas for your bank account?
The collapse of various Icelandic banking operations continues to hit both UK corporates and UK investors heavily with many still awaiting for their compensation. This particular saga has given many investors a serious reality check with regards to their overseas bank accounts and their willingness to chase the best interest rates. In basic terms, any return over and above the average will certainly mean higher risks than average.
It looks as though we will see a significant lull in the number of UK investors and UK corporate entities looking overseas for the best bank account interest rates.
Unfortunately, while there will be a short-term hit in this particular area with less overseas bank accounts opened, slowly but surely it is highly likely we will see a return to former levels in due course. Many people still believe that the Icelandic banking collapse should not have happened and countries such as the UK and Iceland itself were at fault. However, a number of people also believe this was an accident waiting to happen for a country which had seen its banking sector expand exponentially in a very short space of time. When the pack of cards wobbled the whole system collapsed.
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