When you think of an offshore bank account, what comes to mind are often images of globetrotting millionaires who deposit money with the specific intent to avoid tax. The reality is, this is not the case and is often an outdated view. Offshore bank accounts are far more likely to be opened by expats working abroad.
Many UK-based high street banks and building societies have offshore arms, including the likes of HSBC, Lloyds and Skipton. Whilst offshore accounts may not be ideal for first-time savers, they are common, with typical minimum investment amounts being as low as £1,000.00.
“Offshore savings accounts often have attractive-looking interest rates attached, but it’s important to keep a look out for charges associated with having an offshore savings account,” warns James Turner, Director at Company Formation Specialists, Turner Little.
“Before you open a savings account offshore, it’s also important to understand how your money will be protected. Most popular offshore jurisdictions have their own financial compensation schemes in the event a financial provider collapses, so make sure you do your due diligence,” he adds.
Before making any decisions about your finances, you should always seek independent financial advice. However, if you have taken advice and are now in a position to discuss your offshore banking needs, get in touch with us today.