The economic and political uncertainty not just facing the UK, but the rest of the world, means a shift to offshore banking for a UK resident can provide significant benefits and potential mitigation of risk.
An offshore (or foreign) bank account is simply a bank account you have outside of your country of residence. There are several countries that offer an attractive proposition when it comes to choosing where to have an offshore bank account including: Latvia, Belize, Switzerland, Mauritius, Seychelles and St. Vincent & Grenadines.
There are several reasons why, during economic and political uncertainty, an offshore bank account is a wise investment.
1. One of the biggest risks to your money can be your own Government. The UK Government in particular is taking risks with mini budgets that are creating huge upheaval within the Global markets and our standing within them. Other countries have brought in bail-ins, capital controls and even retirement saving nationalisations.
Any strategy you have to manage your wealth should include holding savings outside of your immediate country in the right offshore bank account.
2. Fluctuations in currency, as currently being experienced by the Sterling, can be offset by an offshore bank account. Holding foreign currencies is a great way to diversify your portfolio risk and protect your purchasing power. However, very few UK banks offer an option for holding foreign currencies. Offshore banks, on the other hand, commonly offer convenient online platforms for holding foreign currencies.
3. Never underestimate the ability to be free. Having an offshore bank account provides more options than a domestic bank account…and more options equates to greater freedom. At any given time, you are not solely dependable on any one country or its government.
4. The UK economy – in actual fact most countries’ economies – are in freefall right now. How would your assets look if there was a severe economic crisis similar to 2008? Setting up an offshore bank account provides a type of diversification protection from losing everything you’ve worked so hard to accumulate. Even if the economy at home sours, the odds are slim to none that your offshore balances will be adversely affected.
5. While the UK doesn’t have a huge lawsuit culture, we operate globally and some of our clients reside in countries that do. An offshore bank account can protect your funds from being seized by a tax agency or confiscated in order to settle some type of legal judgment against you.
Seizing assets to settle legal judgements or bankruptcy generally focuses on your domestic assets. There is a much more complex process required for courts to gain access to assets your hold in an offshore bank account. In some situations, it is almost impossible. However, if you are involved in a lawsuit etc. you may still have to reveal your offshore assets for transparency, but the ability for those assets to be seized due to a domestic legal action is limited at best.
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