The most widely used type of bank account is the checking account, which is what you’ll typically use to pay bills, deposit income and handle day-to-day expenses. However, equally important is the savings account, which lets you build up wealth and keep some assets liquid. While it might be convenient to open up a savings account at your local bank branch, heading offshore can definitely offer a number of benefits. Here are five of the biggest reasons highlighting why you need an offshore savings account.
1. You’re Paying Too Much on Domestic Taxes
One clear reason showing you could benefit from an offshore savings account is if you are spending too much each year on taxes. By storing all or some of your assets offshore in a savings account, you could reduce your tax liability significantly.
This is a completely legal move that also diversifies your holdings and makes you less vulnerable to government intervention into your finances.
2. You’re Spending a Lot on Foreign Currency Conversion
One popular reason to open up an offshore savings account is because you’re spending too much on foreign currency conversion fees. If you operate a small business and need to ship to or buy materials from a foreign country on a regular basis, you might be losing a lot every time the exchange rate fluctuate. Even if you are just a frequent traveler, you might be used to paying a small fortune every time you exchange money for your trip.
The balance of your offshore savings account can be in your choice of currency, or it could be in more than one currency, eliminating the cost of frequent conversions.
3. You’re Not Seeing Your Net Worth Grow
If you are struggling to see your net worth grow over time, and you’re disappointed with that fact, opening an offshore savings account might be a smart move. You can set it up so that a percentage of your monthly income goes straight to savings, guaranteeing that the balance grows over time.
4. You’re Not Happy With Domestic Interest Rates
The interest rates for a domestic savings account can be frustratingly low, and they often don’t get higher even if your balance is growing and you’re storing more cash in the bank. Offshore, many banks will offer higher interest rates the bigger your account balance.
A lifestyle account at Caye International Bank in Belize, for example, offers an impressive 0.5 percent APR for balances greater than $100,000.
5. You’re Thinking About Moving Overseas
A final reason that definitely points to your need for an offshore savings account is having a plan to move overseas in the future.
You might have the desire to move to Belize during retirement and soak up the sun, or you might simply be ready to tackle the professional world in a new international city. An offshore savings account protects your assets no matter where you are in the world and can help pay any international bills or expenses.
If any of these reasons resonate with you, then it might be time to open up your own savings account with Caye International Bank.