Who Needs Offshore Savings Accounts

Growing Money An offshore savings account is like any other savings account. To start, it is an account where you can safely store your liquid assets. Typically, savings accounts offer interest rates, allowing savings to grow over time. However, an offshore savings account differs from its domestic counterpart by offering a new destination.

When offshore, accounts may reduce the tax burden, lower overhead fees and diversify a portfolio. Offshore savings accounts really are suitable for just about anyone, but they are especially beneficial to a few key groups of people.

People Who Spend a Lot of Time Overseas

If you live overseas, travel extensively or are thinking about retirement in an international destination, then an offshore savings account can be a smart choice. An offshore savings account is the perfect way to maintain a balance of liquid assets in a different type of currency.

This can come in handy if you routinely spend time in a country where that currency is used.

Parents, Grandparents and Other Caregivers

For parents and grandparents, saving is about more than just preparing for your own financial future. It is also about ensuring that your loved ones are well taken care of.

With offshore savings accounts, there is a level of stability that can be handy when planning to take care of dependents in the future.

Those Beginning the Estate Planning Process

Estate planning isn’t always a fun business, but it is a necessary one. You’ve worked hard to amass assets over your lifetime, so don’t drop the ball when it matters most. An offshore savings account can be a savvy way to transition assets to the next generation, and it is a simple move that can quickly provide for those you love without a lot of hassle or red tape.

Anyone Eager for More Privacy and Anonymity

One of the reasons that individuals opt for offshore savings accounts is because it can be easier to secure privacy for finances. Many offshore jurisdictions have laws in place designed to protect the anonymity of account holders.

For a multitude of reasons, account holders may wish to keep their accounts and their financial balances private, and an offshore account can help facilitate that.

People Who Want to Reduce Their Tax Burden

Keeping assets stored in domestic accounts may lead to significant taxation, which in turn can lead to serious financial erosion.

Those who want to minimize their tax burdens in a legal way may prefer to store assets in an offshore savings account. In jursidictions like Belize, where tax regulations are favorable to foreign investors, this can amount to large savings each and every year.

Those Who Want a More Diverse Portfolio

One of the first rules of investing is to diversify as much as possible. If all your assets are held domestically, then there is little geographic diversification in your holdings at all. By moving some of your assets to offshore savings accounts, you are reducing your vulnerability.

This is a great way to increase peace of mind about your financial stability today and in the years to come.

Clearly, there are many different groups of people who can benefit from offshore savings accounts from financial institutions like Caye Bank in Belize.

Contact us today for more information about International Savings Accounts.

 

About this author


Luigi Wewege is the Senior Vice President, and Head of Private Banking of Caye International Bank, published author of The Digital Banking Revolution - now in its third edition, has co-authored economic research which was presented before the U.S. Congress and currently serves as an Instructor at the FinTech School. He holds an Italian MBA with a major in International Business, as well as a BSBA with a triple major in Finance, International Business, and Management - cum laude from the University of Missouri-St. Louis.