You’re probably aware that Credit Suisse is facing a banking crisis right now, and the ripples are being felt across the world, with other banks under scrutiny. However, it doesn’t mean that you should avoid banking offshore as there are still several benefits on offer.
While the Credit Suisse scandal has cast a shadow over offshore banking, it’s important to remember that this type of banking isn’t inherently bad. In fact, there are plenty of reasons why you should still consider using an offshore bank for your financial needs.
Offshore banks can offer several advantages over traditional domestic banks:
Offshore accounts often allow for multi-currency banking, making them ideal for receiving different currencies into an account, whether that’s your salary as an expat, or your pension in sterling if you have retired abroad.
One of the many advantages of having a multi-currency account is the ability to hold onto your funds in the currency in which they are received until exchange rates become favourable, minimising the risk of currency fluctuations.
Privacy and security
Offshore bank accounts are often considered a secure solution for managing your money well. They can offer greater asset protection against future threats such as the consequence of divorce, creditors or even legal action. However, the security of your funds will depend on the regulations of the jurisdiction in which your bank is based.
Some jurisdictions also offer strict, financial privacy and confidentiality agreements, which means your personal information will not be passed on to third parties, ensuring your assets are shielded to safeguard your personal or company information.
What about still offshore banking in Switzerland?
Switzerland is still a safe place for banking. The Credit Suisse banking crisis was caused by one of Switzerland’s largest banks, but there are other banks in Switzerland that are not part of this crisis and are perfectly trustworthy and are currently in a strong position.
While Switzerland has always been considered a ‘Gold Standard’ country when it comes to banking, there are now several other countries where the benefits to offshore banking are either as good, or better. In previous blog posts, we look at the factors you should consider when comparing offshore banks as well as five countries we’d always consider when helping you to set up an offshore bank account.
I am still worried about offshore banking…
When choosing an offshore bank, look for one with good reputations and solid security measures–but don’t forget that these things can change over time! Always check back at least once every few years so that when something happens like this one did last week with Credit Suisse, as you won’t be caught off guard by any sudden changes in policy or procedure which could jeopardise your personal information or assets held within those accounts.
As the Credit Suisse scandal reminds us, asset protection is important. In fact, it’s probably more important than ever before given how much wealth has been lost over the last decade or so.
For more information on the best options for you, speak to a member of our trusted team today.