Your investment in an offshore bank may take on many forms depending on the types of offshore services and products offered by a given offshore bank. Some offshore banks provide a limited number of services, whilst others with international portfolios tend to make a wealth of services and facilities available to their customers.
Taken for what it is, making an offshore banking investment always makes perfect sense if one were concerned about privacy, reducing taxes, accessing investment opportunities globally and maximizing income from different tax deferral schemes. An offshore banking investment, can therefore be considered as any sum of money or quantity of assets deposited with an offshore banking institution to create and manage wealth.
To this end, a number of offshore banking accounts are designed to meet the financial needs of both corporate bodies and private individuals. For example, offshore banks provide regular offshore savings in which offshore banking investments in cash can be deposited and money market accounts which enable customers to earn higher interest rates than regular savings accounts, but places restrictions on the number of transactions that can be performed over a given period of time and the least amount of money that should be held in the account in order to avoid fees.
Offshore certificates of deposit or time deposits (offshore fixed deposits) are a popular way of making an offshore banking investment, whereby a specific amount of money is deposited for a fixed term and at a fixed interest rate. An offshore banking investment in this type of offshore bank account usually earns higher interest rates if left for longer periods of time; therefore an offshore banking investment in a five year certificate of deposit would normally produce higher interest or returns than one of three months, one or three years.
The increased interest in emerging markets have given many offshore investors legitimate reasons to make offshore banking investments for the purpose of offshore securities trading. Traditionally, offshore investment banks were the primary source for financing the capital needs of corporations and organisations, facilitating mergers and acquisitions and assisting in bond and initial public offerings (IPOs), however, as banks and brokerage firms became more deregulated yet sophisticated many financial institutions built their capacity to provide offshore investment banking services using the offshore banking investments of their customers upon request to do so.
Offshore investors that are therefore interested in international securities are able to avail themselves of the opportunity to make a substantial offshore banking investment through an offshore brokerage account or offshore trading account with an offshore bank or brokerage firm. Customers with this type of offshore banking investment would usually solicit expert investment advice and offshore investment fund services. Further support can be obtained from an offshore bank that provides offshore company such as Belize company and trust formation services which further enhance the performance of an offshore banking investment through tax deferral and privacy.
An offshore merchant account is an unregrettable offshore banking investment, especially if running an online store. This offshore banking facility enables customers to make secure online payments and the direct collection and processing of these payments through an offshore bank. As an offshore banking investment, offshore merchant accounts assist businesses in augmenting their market share by securing one time, immediate sales and quoting prices in major currencies.
The latter is made possible through offshore banking multicurrency accounts to which offshore banking investments are deposited usually regardless of the type of account held. For example, a firm may own an offshore corporate account which is split into three accounts denominated in USD, Euro and pound Sterling, enabling the firm to make offshore banking investments, withdrawals, transfers and payments in any of the currencies that it so wishes. An offshore banking investment in such a facility reduces currency exchange risks which arise from day to day fluctuations.
For easy, regular access to an offshore banking investment, international debit and credit cards, as well as offshore checking accounts facilitate day to day transactions. Offshore bank investments can be checked online to ensure that payments and balances are in order and to remain updated on the status of funds.
Coupled with an offshore company or any other offshore structure such as a trust or foundation, an offshore banking investment is sure to guarantee benefits.