Renounce US citizenship for investment account?

Hello everyone,
My citizenship ceremony is on Tuesday (thank you to this board for getting me through two student visas and a spousal visa), and once I apply for and receive my British passport I am strongly considering renouncing my US citizenship because UK banks are almost completely allergic to FATCA reporting requirements. I have been thinking about this since I got to the UK eight years ago, and I think it might be the best way.

As a US citizen I am only allowed a basic bank account with no interest, and my work pension fund which I cannot touch until I retire. I would like an investment account that at least tries to keep up with inflation, but all the specialists for US citizens investing in the UK expect you to have millions. I just want to have a modest, boring financial life, and I am willing to pay a one-time three thousand dollar fee to do it. I understand that it is a serious decision, but I am not sure what else I could do. What do you think?

Do you have family in the US that you'd want to visit regularly? Do you have children or future children that may benefit from US citizenship? You may want to take a more rounded view of your relationship with and connection to the US before deciding on relinquishing or renouncing your US citizenship.

I do not plan to have children and my family and I exchange visits about every five years. I intend to live in the UK for the rest of my life. I have a fairly passionless view on my legal citizenship and view it as a matter of paperwork. I will continue to have been born in America, and I will continue to say I am from America.
I stand to inherit a reasonable sum in a few decades but that is not going to help much in the current cost of living crisis, when my savings are in an account that is constantly leaking value because it generates no interest. I have now contacted a US-UK investment specialist to make sure I have not missed something, but I think this is probably the simplest method for someone who just wants to stash a few hundred pounds away every month.
Thank you for replying and helping me to think through this.

Risibot wrote: ↑

Sat Aug 13, 2022 8:11 pm

UK banks are almost completely allergic to FATCA reporting requirements.

Not just UK banks, but probably all foreign countries with declarations or treaties are affected? Out of interest, do the US banks reciprocate by reporting their clients to foreign governments?

A brief attempt to parse the International Exchange of Information Manual suggests that the list of countries in the article you linked exchange information on overseas accounts held by their own tax residents, and because the US taxes based on citizenship as well as residence, they receive information about any account held by a US citizen regardless of residence. But I am, as they say, not a lawyer, so I may be wrong.