Growing Your Offshore Savings Accounts
As an international investor, you know the importance of diversification. It helps to have some of your wealth invested in a wide range of holdings. Along with real estate, stocks, bonds and other assets, it is also important to include a few highly stable assets like active offshore savings accounts. While it is true that the returns from these accounts pale in comparison to some of your other investments, a robust balance in a couple of savings accounts can come in very handy.
The Balance in Your Offshore Savings Accounts
One of the issues that investors run into from time to time has to do with cash flow. Basically, there is a good chance that at one time or another you will need cash for an investment and not have the funds in your checking account. While buying on margin is a good idea in some instances, that won’t work for every type of investment. This means you need some sort of cash reserves that you can call upon when and as needed.
If you did a good job of reviewing different offshore banking services, chances are that you were able to set up at least a couple of offshore savings accounts that do not penalize you for withdrawing funds from time to time. These are exactly the types of accounts you want as sources for quick cash. When you don’t need to use the money, those funds are quietly accruing interest and helping to increase your wealth. On those occasions when you do need the funds, they can be transferred immediately and often allow you to take advantage of an opportunity that is only available for a very short period of time.
What Other Perks do I Get With Offshore Banking Services?
Along with those offshore savings accounts and the ready cash they provide, it is often possible to lock in a rate of interest that is very competitive. What this means for you is that while the funds are not in use for some other purpose, they are earning an amount of interest income that would be hard to come by with other institutions. Think of how much you would earn if the money was not needed for two or three years at a time. By the end of that time frame, the amount of interest income could easily be two or three times the amount you would earn elsewhere.
Another benefit of these types of offshore accounts is that they tend to provide ongoing returns even when other investments are not performing up to par. Even when the economy is going through a slump, you can still depend on the rate of interest that you locked in when the account was opened. In terms of financial security, those returns are low, but they are very reliable.
Where Should I Base My Offshore Savings Accounts?
Deciding where to establish your international savings accounts requires doing a little research and determining which nation has banking laws that work in your favor. For English speaking investors, banks in Belize are well worth considering.
Since English is the official language for the nation, communication is never a problem. You will be able to easily communicate with bank personnel via an agent who is based in the nation, by telephone or even by email if necessary. The reports and statements you receive will also be in English, allowing you to easily assess the current status of those accounts.
In addition, the government of Belize has gone to great lengths to create an environment that is very friendly for international investors. Take a look at what the banks offer in terms of interest rates, minimum balances and easy access to the account balances. There’s a good chance you will find several institutions that are ideal for your purposes.