Lee Byers Warning to Poor Offshore Bank Account Interest Rates
Lee Byers Warning to Poor Offshore Bank Account Interest Rates
Many people assume that because a personal current account is offshore it is automatically better' than an onshore bank account in some way usually in the amount of interest it perhaps pays, or because it is more likely to be secure' and/or private.' However, all of these myths need to be dispelled because they are very far from the truth.
Today we want to highlight the fact that a personal, basic offshore bank account is probably not somewhere anyone should be stashing lots of cash because it is unlikely to return them an interest rate that will even beat inflation. What's more, such accounts are often no more or less private or secure than an onshore high street equivalent. Please note however, this article does not constitute advice, and any decision pertaining to the management of your wealth should only be taken following receipt of professional advice.
A recent article in the Telegraph revealed that over 20 offshore banks are currently paying their customers less than 0.5% interest on their positive balances. And another report by Reuters has revealed that the international intense crackdown on the offshore industry is rapidly eroding any previously offered benefits of private offshore banks. Therefore, an offshore bank account is not necessarily the best place for your money if you want high returns or high security.
The report in the Telegraph into the interest rates paid on current accounts examined onshore and offshore offerings; and it discovered that you're not necessarily going to get any more for your money in terms of the interest rate paid by moving offshore.
The report by Reuters revealed that there is an ever-diminishing differential between offshore and onshore banks in terms of the privacy they offer their clients for two reasons. Firstly, the international political community has put such significant pressure on the offshore financial industry to remove layers of secrecy, that it is no longer possible for offshore banks to offer truly private' banking services. And secondly, onshore banks are raising their game when it comes to internationalised wealth management services offered, removing the need for some clients to even consider going offshore.
All of these factors mean that a personal offshore bank account today is more likely to be a slightly more flexible international account option for the likes of expatriates as well as those who live/work/travel extensively. It is far lass likely to be the solution of choice for anyone seeking higher returns or greater security of account data.
If you're wondering how you can potentially utilise the offshore financial marketplace to increase the gains you enjoy on any wealth banked, saved or invested, you need to spend time with an expert adviser. It's likely that your financial position will be examined from an holistic perspective, and that you will be advised to have some money on cash deposit easily and readily available in the event you should need it in an emergency.
Then going forward from there, your adviser will look at the best investment and savings options for your wealth. It may be that you're advised to keep your money onshore or that there are good options for you across the offshore and onshore marketplace perhaps. Advice given will be relevant to your personal circumstances.
For some people, going offshore' - in terms of saving and investing their wealth makes sense. This may be true for expatriates and offshore workers for example. For other people, there is no real benefit to offshoring their financeswhich is why taking personal advice is essential.
If you're wondering how you can potentially utilise the offshore financial marketplace to gain greater transactional security for your banking affairs, and you have a legitimate reason for wanting a secure and private account, a business offshore account may be a solution for you to research.
Some people in aggressive industries require banking privacy to protect their client-base for example; others need to secure their business assets away from potential litigation. For those with genuine need, business offshore bank accounts perhaps wrapped' within an offshore company and trust structure can offer them the level of privacy they require.
As a bottom line, understanding what the offshore financial marketplace can and cannot offer you is essential one needs to understand the limitations and the benefits of going offshore on a personal basis. If you require advice, please do get in touch, it may be that we can recommend an adviser to assist you.