When people hear the words ‘offshore’, they somehow attach an element of illegality to it when that is just not true. It is quite simple to explain because offshore refers to any kind of activity including business that is outside or away from the country where your business currently operates in. Many businesses look into offshore banking because the regulations may not be as strict as their home country and so they can enjoy more favourable conditions.
Other people take advantage of offshore bank account services because they travel to this particular country quite a lot and so it makes sense that they would keep some of their funds there. There are a number of different locations that have become popular over the years, like the Channel Islands and the Bahamas. You will also find other options in countries such as Switzerland and Ireland, so there are many places to choose from.
If you are still in the dark when it comes to offshore banking and why it is something that you need to consider for financial security, then maybe the following benefits can help you to make a more informed decision.
- Increased security & protection – There are many instances when the bank or any other lending institution in your home country doesn’t offer a favourable interest rate and so it makes more sense to move your money somewhere it can earn for you. In the past, there have been situations where countries have got into financial difficulties with regard to their stock exchange and their banking institutions, and people were actually stopped from taking money from their own bank accounts.
- You enjoy higher service levels – We hope to enjoy better service and higher levels of privacy when we use various banking institutions, but the laws are being changed and now governments can actually request details about your individual bank account. If you want more privacy and secrecy with regard to your financial transactions, then moving your money to places like Switzerland and Singapore makes more sense.
- It’s easy to access – Due to the fact that we live in a very digital banking world, you can set up an offshore bank account in the country of your choice and you can easily have access to your funds using your smartphone or other digital device. It means that you can keep all of your funds in one bank account and that is much more convenient than having to spread out over many banking institutions.
You also get a better choice of ways to invest your funds that may not be available to you in your own country. Offshore banking also allows you much more flexibility when it comes to borrowing money and rates that they offer you may be more competitive than in your home country bank. Like everything in this life, the same benefits don’t apply to everyone and it depends on your individual circumstances and the amount of money that you have to invest.