Published on April 14th, 2013 | by Pete0
Offshore Banking – Just for millionaires?
Offshore banking is one of those things that I’ve been aware of for a number of years, and never really known anything about. I thought there might be other people who were also in the dark about this topic, so I thought I would do some research, and write something about it. Here is the fruit of my labours!
So what is it – normally a good place to start! Essentially, offshore banking means that you have a bank account in a location outside of the country you live in. I would not suggest Cyprus currently! So, providing you’ve got some money to some of this banking lark with, why choose to do this banking abroad? What exactly are the benefits?
If, like Michael Palin you are a bit of a globetrotter, offshore banking provides you with the opportunity to retain your money in a central and secure location, whilst you move around the world. It also allows you to manage your finances more easily, in multiple currencies, across different countries.
You might be an expatriate, meaning that you could have financial commitments in your home nation, and your adopted home. Lots of people in this position have a bank account in their home country to cover financial commitments such as property payments and school fees. They will also have bank accounts in their new countries to cover the everyday commitments, such as rent, utility bills and general living expenses. Offshore banking provides a link between all banking arrangements and commitments, affording easy international access to finances.
Of course there are a number of tax benefits that can be enjoyed when keeping your money abroad, although it is wise to avoid Jimmy Carr style tax evasion systems, which will hopefully keep the moral compass pointing in the right direction. Money also tends to be safe offshore, given that most of the assets of the very wealthy are stashed abroad, this appears to be a good place to keep savings.
I am not personally in a position currently to really save anything, never mind invest. But when I am, as I now know more about the benefits of offshore banking, I would definitely consider it.