Having an offshore bank account involves depositing money with a financial institution that is in a foreign country. A person might open such accounts to take advantage of some schemes offered by other countries. Those who have houses in other countries might also open accounts there. These types of accounts offer certain benefits for various people.

How secure is it?
In some countries, there is little protection for deposits that are made with banks in that country. For instance, many expats in Cyprus were unable to remove their own money in 2013 during the crisis. In such cases, an offshore account offers security for one’s money. The foreign countries that have better regulations and a jurisdiction that is transparent are good options for opening an offshore bank account.

How is the customer service?
The services offered for an offshore bank account are extremely personalized. One is given access to the money all year round through telephone and online banking. There are relationship managers appointed for an account and one can maintain contact with the bank through them. Services provided by the top banks is of a very high standard and can attract expats that might have several financial dealings internationally.

How convenient is it?
For those who live in different countries and are constantly on the move, having an account in every single place can be very convenient. Very often, this is one of the main reasons people have accounts in offshore banks.

What are the tax benefits?
In some cases there can be tax benefits for those who have an offshore bank account. This is something that is determined by individual circumstances. For example, the place where one resides can determine whether there are any tax related benefits. Tax advantages can include depositing money in a jurisdiction where one cannot be taxed or being able to protect one’s money from local taxes of the place where one is residing.

How to invest?
One will have the option to consider a range of investment or funds when one has an offshore account with a good bank. These are options that might not be available where one is living or in one’s native country. Offshore banks can offer straightforward investing. They can also provide tools or advice to help one make a portfolio for investment. This portfolio is created keeping in mind one’s investment goals and risk profile.

What are foreign exchange facilities?
Most standard offshore bank accounts are multi-currency and this makes it easy to transfer money from one account to another. When transferring money among different currencies, an offshore bank can also offer better rates of exchange than a normal bank. This can be extremely beneficial for expats who have financial commitments internationally.

What about credit and lending?
In some cases, an offshore bank account can be similar to a banking service that is private. The advantage in such a case is that there are flexible credit and lending options that are made to suit individual requirements. For instance, one might find rates for a mortgage that are highly competitive, especially when looking at property in markets such as UK, which are mainstream.