A bank account can serve a number of purposes including asset protection, peace of mind, security and growth. While domestic bank accounts may be a suitable start to your financial plan, adding an offshore bank account can often be a fantastic next step. These four reasons will help potential account holders see the value in opening up offshore bank accounts.
Prevent Government Intervention
The government can provide a lot of protection and support in many ways, but in some cases, they can also interfere with personal or business banking. While you will hopefully never find yourself in a situation where assets are frozen or subjected to scrutiny, these events can happen. Placing some or all of your holdings in an offshore bank account can help you keep some assets away from potential government intervention today as well as in the future.
Legally Reduce Tax Burden
As Benjamin Franklin famously said, death and taxes are the only two constants in life. However, opening an offshore bank account can help you substantially limit the amount of tax you are required to pay on an annual basis. In places like Belize, for example, the profits from your accounts and holdings are not subject to a capital gains tax. That means more profit for you and less to pay out at the end of each year.
Diversify Your Financial Holdings
While everyone knows the saying of, “not placing all your eggs in one basket,” far too many investors place all of their assets in the banks of a single country. It is a much smarter idea to diversify your holdings and place some assets in at least one offshore location. An offshore bank account is the simplest way to protect your assets, reduce your vulnerability and make your financial status more secure and far less risky.
Enjoy Better Interest Rates and Lower Fees
With a domestic bank account, you may be restricted to high interest rates on loans and high fees for things like management and maintenance. While the exact rates and fees vary from lender to lender, domestically they won’t change much. By heading overseas to an offshore lender, you may be able to benefit in a big way. Different currencies mean different interest rates that can help you save money, and lower maintenance and operation fees can also help you to spend less on things like trusts, mutual funds and other investments.
Whether you are a frequent traveler, a retiree ready to move overseas or a working professional with a family, offshore bank accounts can be a smart investment for the security and growth of your assets.