Offshore banking, long since thought of as the domain of billionaires and international corporations, is rapidly growing in popularity among individuals. That is because private offshore accounts can be incredibly advantageous for anyone who wants to diversify their holdings, enjoy greater financial security or just take advantage of potentially lower tax rates.
Whatever the reason you are contemplating opening up an international bank account, it makes sense to learn more about six of the many things you can do with private offshore accounts.
1. Enjoy Greater Interest Rates
Offshore bank accounts often provide higher interest rates than domestic banks, but you can take it one step further by choosing to open a lifestyle account.
An offshore lifestyle account at a financial institution like Caye International Bank raises your interest rates with your balance. The more you save, the more you can earn just by keeping your cash in a designated lifestyle bank account.
2. Save on Your Taxes
Another definite benefit of having private offshore accounts is being able to legally reduce your tax burden. These potential savings differ from location to location, so it is important to choose a jurisdiction where taxation rates are favorable.
In Belize, for example, foreign investors who have bank accounts in the country don’t have to pay any capital gains taxes should their investments or holdings make a profit.
3. Take Out a Loan
Having a private offshore account can be a stepping stone to taking advantage of the many offshore financial services that are available. Whether you want to purchase an investment property or a home to use in your retirement in the future, an offshore loan could be exactly what you need.
Often, one of the prerequisites for an offshore loan is having an offshore bank account.
4. Use a Prepaid MasterCard
Another advantage of having a private offshore bank account is being able to apply for prepaid cards for travel. A prepaid MasterCard, available through Caye International Bank, can be the perfect way to mitigate risk on your next international trip.
The card is accepted just like a credit card would be, but it is limited to the money you previously transferred onto the card. If it is lost or stolen, you only lose a measured amount, and no one will have access to your primary bank account or your credit.
5. Bank Online
Through most offshore banks, you can easily bank online. Having the option of online banking makes it easier to manage your private offshore accounts and handle all of your bills, payments, transfers and balance checks without needing paper copies or direct communication with your bank of choice.
6. Have Access to Multiple Currencies
Offshore banks aren’t limited to providing their customers with a single currency choice. You might want private offshore accounts that hold a set amount of Euros for upcoming trips to Europe or any other foreign currency as a means of diversification.
Whether you have millions to protect or you’re just thinking ahead and planning for the future, opening up private offshore accounts can be beneficial in a number of ways.