What do you do when the banking system in your native country is flawed? Or when the financial institutions in your home land cannot give you certain guarantees about the future of your money? Or if the government agencies in place are corrupt unstable organizations ready to go on a witch hunt at a whim?
In all of such cases the answer to the problem lies with an offshore banking business.
What is an offshore bank?
An offshore bank is simply a bank that is focused towards accepting deposits only from foreign individuals and businesses. A good example of this is the countless banks in Bahamas, Belize, Panama, Cayman Islands, Mauritius and Switzerland that offer a great many financial advantages to the people and entities that choose to bank with them.
Very often the banks involved in the offshore banking business deal in multiple currencies that are not the currency of the location from which they operate. As these banks do not offer their services to the residents of the country they also do not fall under the monetary policy that governs the financial sector of the country, allowing them to offer many different financial advantages to their customers.
It must be said that there is a certain stigma attached to the offshore banking business and a majority of people just assume that they are solely used for illegal purposes but that is not true at all. The reality is that a vast majority of people who have an offshore banking account merely have that, as they want a stable environment for their money to be parked into. Others like the idea of lower taxation while pretty much everyone is attracted to the higher interest that they can generate on their savings when they are dealing with an offshore banking business.
People also mistakenly believe that you need to be super rich to open an offshore banking account. The truth is that anyone who wants to safeguard his or her cash is eligible to open a offshore account.
Secondary advantages of an offshore bank account
Plenty has been said about the tax that you can save, the interest that you can earn and the privacy that an offshore bank account provides you with. At the same time there are a whole lot of other advantages that you can enjoy with an offshore bank account.
Firstly, when you are banking in a jurisdiction where there is much more political and economical stability than your home country, then you are safeguarding the future of your heard earned cash. Just look at what happened in Zimbabwe in the 2008-09 where hyperinflation caused the currency to loose whatever value it had. They even had to print a currency note with an almost comical value of a 100 trillion Zimbabwe dollars and in 2009; the government completely stopped printing any new money.
This is what can happen in a politically corrupt scenario that sooner or later makes the economy unstable. The Zimbabweans who had money saved in offshore accounts in other currencies were able to retain their savings while unfortunate persons who held Zimbabwean dollars went from riches to rags.
Since an offshore account allows you to hold your money in other currencies like Euros and Dollars, this also provides you with a chance to invest in foreign currencies. This is something that will not be possible in your home country as governments usually put strict regulations on dealing in foreign currencies. It is only with an offshore banking account that you can enjoy this benefit.
Putting all of your money in a bank account in your native country is like putting all of your eggs in one basket. It is like a business that has only one client. This is nothing but a recipe for disaster. A government can freeze or confiscate your assets at any time for whatever reasons even without having to prove it in court. Even a layman can tell that holding all the money in one place in such a case is nothing but foolish.
Opening an offshore bank account
The fact that opening such an account is an absolute easy process makes this an even more lucrative option. With some jurisdictions, you do not even need to go there in person to open an account. You merely fill a form, send them the documents they need and pay the fee.
Given the advantages such a venture offers, it would be beyond foolish to at least not consider it. Wouldn’t you say?
In all of such cases the answer to the problem lies with an offshore banking business.
What is an offshore bank?
An offshore bank is simply a bank that is focused towards accepting deposits only from foreign individuals and businesses. A good example of this is the countless banks in Bahamas, Belize, Panama, Cayman Islands, Mauritius and Switzerland that offer a great many financial advantages to the people and entities that choose to bank with them.
Very often the banks involved in the offshore banking business deal in multiple currencies that are not the currency of the location from which they operate. As these banks do not offer their services to the residents of the country they also do not fall under the monetary policy that governs the financial sector of the country, allowing them to offer many different financial advantages to their customers.
It must be said that there is a certain stigma attached to the offshore banking business and a majority of people just assume that they are solely used for illegal purposes but that is not true at all. The reality is that a vast majority of people who have an offshore banking account merely have that, as they want a stable environment for their money to be parked into. Others like the idea of lower taxation while pretty much everyone is attracted to the higher interest that they can generate on their savings when they are dealing with an offshore banking business.
People also mistakenly believe that you need to be super rich to open an offshore banking account. The truth is that anyone who wants to safeguard his or her cash is eligible to open a offshore account.
Secondary advantages of an offshore bank account
Plenty has been said about the tax that you can save, the interest that you can earn and the privacy that an offshore bank account provides you with. At the same time there are a whole lot of other advantages that you can enjoy with an offshore bank account.
Firstly, when you are banking in a jurisdiction where there is much more political and economical stability than your home country, then you are safeguarding the future of your heard earned cash. Just look at what happened in Zimbabwe in the 2008-09 where hyperinflation caused the currency to loose whatever value it had. They even had to print a currency note with an almost comical value of a 100 trillion Zimbabwe dollars and in 2009; the government completely stopped printing any new money.
This is what can happen in a politically corrupt scenario that sooner or later makes the economy unstable. The Zimbabweans who had money saved in offshore accounts in other currencies were able to retain their savings while unfortunate persons who held Zimbabwean dollars went from riches to rags.
Since an offshore account allows you to hold your money in other currencies like Euros and Dollars, this also provides you with a chance to invest in foreign currencies. This is something that will not be possible in your home country as governments usually put strict regulations on dealing in foreign currencies. It is only with an offshore banking account that you can enjoy this benefit.
Putting all of your money in a bank account in your native country is like putting all of your eggs in one basket. It is like a business that has only one client. This is nothing but a recipe for disaster. A government can freeze or confiscate your assets at any time for whatever reasons even without having to prove it in court. Even a layman can tell that holding all the money in one place in such a case is nothing but foolish.
Opening an offshore bank account
The fact that opening such an account is an absolute easy process makes this an even more lucrative option. With some jurisdictions, you do not even need to go there in person to open an account. You merely fill a form, send them the documents they need and pay the fee.
Given the advantages such a venture offers, it would be beyond foolish to at least not consider it. Wouldn’t you say?
