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Because of the financial status of a certain European country (euro member) - I'm afraid of loosing money in case of a default, so I'm looking into options of moving family money to the UK, where I currently live and work.

It is a sum of about 100.000 euro, which is right now invested in a term account with one year duration, yielding a nice interest of about 4% or more (and gets repeatedly reinvested in accounts like that)

The first obstacle is moving the money and the second re-investing them.

Since I don't really need to have the money in sterling in the UK (it is my family's money, and they are not in the UK - they'll want them back someday), I was thinking about opening a Euro account in my high street bank (in which I maintain my current account for work) and just transfer the whole sum there through internet, with little fees for the transfer.

The other option is converting the sum to sterling - maybe using a fx company specializing in this kind of money movement?

Then, my main problem is where to put the money, and how to invest them, to get a similar interest - I'm willing to accept less of course. For example, can I use term accounts while the money is in Euro while in the UK? Or should I have to convert first? What other options are there - on the not-very-high-risk level? I'm more interested in the options I have while the chunk of money is still in Euro.

  • Why would you want to move your money out of the Eurozone? Sure, some of its members will default, but Germany or the Netherlands won't. The latter will guarantee your savings up to €100.000 per bank. – MSalters Jun 3 '11 at 11:20
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During my time in the UK I've never seen saving bonds or other term deposit accounts that were not denominated in GBP.

The obvious downside of converting the money into GBP would be that you're adding currency risk to the whole scenario. If the EUR appreciates against the GBP, you'll have to make up for that too, just to keep your nominal capital intact.

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