Why to open an offshore bank accountTop 7 reasons why you should open one now
Are you still wondering why to open an offshore bank account? Well, here are top 7 reasons why you should open one now!
Could you benefit from an offshore bank account?
Not only is banking offshore legal, for the majority of internationally minded individuals and companies it makes increasing sense. Banking in a jurisdiction other than the one in which you live or do business can bring multiple benefits, and whilst we will enable you to identify how an offshore bank account could personally enhance your own position, here are 7 of the most commonly sought advantages from offshore bank accounts:
The Mediterranean island of Cyprus made global headlines in 2013 when its financial system teetered on the brink of collapse, due in large part to its banks’ exposure to overleveraged property companies.
The economy was brought back from the brink by an EU bailout, paid in return for the confiscation of depositors’ funds. In effect, the Cypriot government stole money out of people’s bank accounts to refloat its economy, and it made no apology for doing so…
Considering many American, British and European banks have equally toxic asset portfolios, and many Western nations are equally economically stressed, there is every chance that what happened in Cyprus will happen again.
To protect yourself from this political risk, consider banking in a jurisdiction with lower debt, where it will be harder for anyone, (from your government to a disenchanted former personal or business partner), to get their hands on your wealth.
You may already diversify your asset holdings across multiple classes – from stocks to bonds to real estate for example, but true diversification comes when you lose your home country bias.
By choosing the right international account in the best offshore jurisdiction you can potentially diversify across currencies, you can easily gain exposure to global financial trends and opportunities, and you can of course reduce exposure to your own nation’s political or economic risks.
3.Accessibility & flexibility
Many international banks offering offshore accounts focus on the flexibility of their product, because they know their clients need global access to their funds.
Accessibility can be facilitated via worldwide accepted debit and credit cards, and 24 hour access to Internet and telephone banking, meaning that no matter where in the world you’re located, you can access your offshore banked funds without restriction.
4. Privacy & security
Depending on the jurisdiction you choose you may be able to enjoy greater asset and transactional confidentiality, and enhanced privacy and security from an offshore bank account.
Some of the best-respected offshore centres place great emphasis on the protection of identity and the maintenance of confidentiality.
If you bank therein this can mean that you can protect your assets from speculative litigious behaviour for example, and shield yourself and your wealth from being attacked or frozen.
5. Taxation savings
Offshore bank accounts can pay gross interest, and if you live in a country where offshore-earned income is tax free, you may be able to enjoy tax saving benefits from an appropriately located and structured international account.
6. Improved interest rates
Depending on where you’re comfortable banking offshore, you may be able to enjoy improved interest rates on your banked deposits.
In the UK, Europe and America interest rates remain at historically low levels, elsewhere in the world improved rates are achievable depending on the jurisdiction and currency you choose.
7. Lower fees & charges
If you regularly transact internationally an offshore bank account could significantly reduce your foreign exchange and transfer fees, speed up your transactions and cost you far less in real terms.
Depending on the account and bank you choose and the jurisdiction you favour, it is possible to benefit from low or even fee-free banking in multiple currencies, as well as more favourable exchange rates and international transfer fees, making your overall banking business cost far less.
What might happen to your assets without an offshore bank account?
Consider these scenarios and then decide whether you should speak to us about setting up an offshore bank account, appropriately structured to meet your unique requirements:
You live and work in a civilised western country, your money is in one of the leading national banks, apparently protected by a some sort of depositor protection scheme, you have a distinctly home country bias when it comes to money matters, owning your own home and having a few savings accounts and investments dotted about nationally.
But if yours is a nation in Western Europe, or it’s the US or the UK, everyone knows it has a shaky economy mired in debt, and it has banks with toxic assets, some of which have failed already.
At best your country may have an underfunded investor protection scheme, at worst it has an insolvent one.
So when the economy starts to creak again, because it will, or there’s a run on the banks, your home country bias could cost you everything you have.
Following already established international precedents your bank could limit or even prevent you withdrawing your funds, your government could confiscate your savings, your bank could go bust, and any depositor protection funds could fall drastically short.
Alternatively, if you feel the above stretches the imagination too far, consider that 42% of UK marriages end in divorce, 15 million lawsuits are filed in the U.S. every single year, and on average half of all new businesses in Europe fail.
Therefore, it is entirely conceivable that at some point in your life your assets may become a focus for greedy lawyers acting on behalf of a former spouse, an unhappy client or an aggressive creditor. Home country assets are highly visible, easily frozen and a soft target for litigation.
How to open an offshore bank account
Opening an offshore bank account can be very straightforward; in many cases once you’ve satisfied a bank’s know your client due diligence identification checks and paid a deposit, your account can be opened.
However, not all offshore jurisdictions, banks or accounts are the same – and the key to benefitting from an international bank account is selecting the most appropriate one for your requirements and circumstances.
Why choose us to help?
At Winston Wolfe & Co. our unrivalled industry experience enables us to quickly and easily identify the most appropriate offshore bank account for our private and corporate clients, every time.
Our global reach, combined with the close professional relationships we have with multiple international banks in the world’s best jurisdictions, means that we facilitate account opening for all clients.
Having worked with you to understand your requirements we will make a unique personalised recommendation, and take you through the account opening process, making the entire procedure smooth and stress-free.
How we can help you?
We enable individual and corporate clients to open offshore bank accounts with world leading banks in a wide range of jurisdictions.
We offer confidential personalised advice to enable your decision-making, helping you select the most appropriate account from the most suitable bank in the best jurisdiction, according to your individual requirements.
We are licensed and registered professional intermediaries, offering full-service offshore solutions.
Do you want more information about offshore banking?