An offshore bank is a banking institution which is situated in a country outside the domicile of its account-holders. Generally a depositor maintains ‘offshore accounts’ in banks located in tax haven countries which provide various financial benefits. Accounts in bank offshore are also needed by those who possess vacation homes in foreign countries. For those who wish to keep their funds away from their domestic country for some reasons, the best way to secure your funds is to bank offshore.
The media often presents a demonized picture of the offshore banking in which the account-holders are criminals engaged in shady illegal financial deals and all the money deposited on those accounts are black money. Though the allegations in some cases might be true, the majority of offshore accounts are perfectly legal.
Apart from depositing your money in offshore accounts, you can also utilize other strategies of offshore investments. Many legal, reputed offshore companies offer investment opportunities in the form of bonds or equity assets which are perfectly safe.
For those who want to access medical treatment in foreign countries, opening an offshore account in your desired country is always beneficial.
An offshore bank account gives you a list of benefits which normal banks of your domestic country can never promise.
- Tax Benefits
Many foreign countries have low-tax jurisdiction or offer substantial tax incentives to foreign investors. Interest incurred on your deposit is usually free from any tax deduction. Some banks even pay more interest and charge less than banks which are onshore.
- Currency and Investment Diversification
Holding accounts in offshore banks is an easy way to get hold of a substantial amount of foreign currencies. By the way of internationalizing your savings and diversifying your portfolio risk, it safeguards your purchasing power. Strict regulations of some countries obstruct any attempts at diversification of investment. In those cases the investors feel the need to bank offshore so that they can enjoy unlimited access to international markets and all forms of major exchanges. Offshore banks offer various interesting investment solutions and services to their clients ....
More Efficient Banking
Offshore banks in low-tax jurisdiction countries usually keep large amounts of cash on hand to meet any withdrawal request at any time. This is a particular advantage which the onshore banks fail to deliver as they keep only a tiny amount of liquid cash ready. Therefore, during the time of another Lehman Brothers type financial crisis, you wouldn’t be able to access your savings at all.