Offshore Bank Account
Although the term “offshore” is erroneously associated with illegal activity, money laundering, the offshore services, offshore business and offshore banking, offshore bank accounts are all legitimate vehicles which are used for: global business activities; for asset protection; privacy and; offshore banking and offshore services can be also reliably used as tax planning tools.
Many jurisdictions in which offshore banking services and offshore bank accounts are available have low operational cost whereby that is transferred to the client through more competitive interest rates, and as such using an offshore bank accounting can in fact provide another great benefit of increased savings or capital gains.
While a few decades ago offshore bank accounts were maintained mostly by individuals of HNW and to some extent, international corporations, today, anyone can afford to hold an offshore account. Offshore bank accounts can be opened for as little as US1000 in some jurisdictions.
Personal and business offshore bank accounts are widely accessible, the offshore banking business is lucrative business opportunity and in turn very competitive business (globally). Just look at all the offshore banks found on the internet. Generally, offshore banks accounts are affordable to maintain and manage.
The key reasons for having an offshore bank account:
The specific on the services and types of Offshore banks account will be determined mostly by the banks. Offshore bank accounts are normally deposit or lending accounts, with the full range of services in between. Corporate offshore bank accounts may have access to specialized services such as letters or credit, lines of credit and other business oriented offshore bank services like merchant account and the like.
An offshore bank accounts are used and managed like any other normal bank account, but with extended reach. Many offshore bank accounts can operate in multi-currencies, sans the exchange restrictions and fees that normally apply to foreign exchange transactions.