As the benefits of having an account in foreign bank, there are many people are trying to capture this opportunity. Whether you are looking to reduce the tax deductions, want to have access to different currencies, want to invest your money in another country for getting more interest or just want to keep it safe and secure; a foreign bank account will meet all your needs. As more and more people are now trying to have an account in the foreign banks, it is becoming harder to get qualified for the one. Due to this reason, you are recommended to do the registration as soon as possible to avoid complication. However, here we are going to mention some fictions and facts related to the foreign bank accounts.
Fiction- Having account in a foreign bank is not good because they are not able to pay the high interest rates they claim. If they are really paying the high rates then US banks would have tried to compete with them.
Fact- If you are also thinking so, then you should examine the financial statements of US banks. Though their gross profits that they earn from the customer deposits range from 25-40 percent, but there are strict limits for the interest rates that they can pay to their customers. The fact is that the US banks spend their earnings on the non-productive tasks and unnecessary frills, which cause them to limit the interest rates that they pay to their customers. In contrast, the offshore banking doesn’t get involved in such tasks and aim at sharing profits with their customers. It lets the foreign banks to pay higher interest rates to their customers ....