Whatever your financial goals, adding an offshore bank account into the mix can help your funds go further, subject to your chosen jurisdiction.
So, what exactly is an offshore (or overseas) bank account? Simply, it is a bank account outside of your country of residence. Depending on your circumstances, it’s a practical and secure way to save, invest, and manage money tax-efficiently. Here are the top five reasons why you should open one:
Reason #1: Minimise political risks
One of the biggest threats to savings in a local bank account is the changing political climate. From bank deposit taxes to retirement savings nationalisations, your money might be at risk due to government intervention. The good news? Setting up a foreign bank account in the right jurisdiction can protect your savings from confiscation, freezing or devaluation. This gives you easy access to your money when you need it most.
Reason #2: Protect assets from legal action
Offshore banking offers a simple way of moving your funds from a position of vulnerability into one of security. Strictly speaking, it is much more difficult to “go after” assets held in a foreign jurisdiction than a domestic one, making you a less attractive target for creditors, lawsuits, and divorce lawyers.
Reason #3: Currency diversification
Spreading your wealth across multiple jurisdictions and currencies can bring the reassurance of a financial safety net. What’s more, various currencies offer tax-efficient savings and investments, as well as high-interest rates on deposited funds, although these benefits would depend on your personal circumstances.
Reason #4: Maximise your freedom
Offshore bank accounts give you more freedom, as you keep the same bank account every time you move. Suppose you regularly transfer money overseas or hope to retire to another country. In that case, offshore banking is an excellent option as it removes the risk of losing out on exchange rate fluctuations.
Reason #5: Increase your privacy
Most offshore banking regulations hold their account holder’s privacy in the highest regard. As such, offshore banks are under no obligation to disclose account holder identities to any third parties, unless in the case of money laundering or serious criminal matters like terrorism. So your money matters remain entirely confidential.
At Turner Little, we have over 20 years of experience in international banking as well as a thorough understanding of offshore banks and the rules for each jurisdiction. Interested in opening an offshore bank account with us? Speak to a member of our trusted team today