Offshore bank accounts are savings accounts that are situated outside of your country of residence. For example, if you live in the US, and you have a bank account in China, this is an offshore account. This gives you the ability to save in numerous currencies, which can be very advantageous. A lot of people mistakenly believe that you have to be very wealthy to open an offshore account, but this is not the case. While some banks may require a deposit of at least $10,000, there are those that will allow you to open an account by depositing as little as $1. Read on to discover the benefits associated with keeping your money in an offshore bank.
Security
You can benefit from increased security if you place your money in an offshore bank that is situated in a jurisdiction that is transparent and highly regulated, such as the Isle of Man. This can provide you with the peace of mind that your money is secure.
Tax savings
There are a number of tax benefits you can make the most of by choosing an offshore bank account. Offshore accounts can be very useful for estate planning. However, the main reason why people go down this route is so that they are protected from taxes that they otherwise would have had to pay in their home country. This is good for capitalising on investment opportunities. This is why most people set up a bank account in a ‘tax haven’, i.e. a location with a low tax rate or no tax rate at all.
Competitive interest rates
You will be able to lock in great interest rates by opening an offshore account, especially if you choose a long-term one. You will need to shop around for the best rates, which is where a financial advisor can really prove their worth.
Easy transfers
Offshore banking makes transfers a lot easier, as you can make transactions in a number of different currencies, from US dollars to sterling. This makes it much easier for you to transfer money between your home bank account and an overseas location.
Investment options
You are going to have a much broader assortment of investments and funds to choose from with an offshore bank, as you will have access to those that are not available in the country you are living or your home country. You also need to consider that in offshore jurisdictions, the financial institutions are often more tuned into the mind of expat investors, and so they will offer a range of financial products that are more suited to your investment portfolio.
To make sure you make the most of the benefits that have been mentioned above, you need the assistance of experienced and qualified professionals. Look for someone with experience in offshore banking specifically.
