Understanding offshore banking

We are seeing offshore banking becoming more and more mainstream these days, people are realising that they do not need to be super rich to open this type of account. Many people are confused by offshore banking, they are left wondering what is high interest offshore banking? In reality it is a very straight forward way of banking that you can reap many benefits with.



Offshore banking is simply opening a bank account in another country other than your own, so it’s just opening an account in a foreign country. A simple example would be, if you live in the UK and open an account/make an investment in the USA then you are a part of offshore banking. Many people apply for an offshore bank account, it is very beneficial for frequent travellers, professionals and students to open an account.


People often see managing their money and investments as a daunting or time consuming task, the truth is that it is very simple indeed. Managing your money in an offshore account is straight forward, it only takes logging on to internet banking or picking up the phone to make a call. Just because the account is in another country doesn’t mean it is difficult. Offshore banks are slick, well run outfits. The staff are trained to the highest standard and are always on hand to help and assist you. With so many high street banks disappearing theses days, most of our communication with banks is online or on the phone – this is similar to offshore banking, but offshore banking gives you much more benefits.


There are a couple of major reasons why people need to set up an offshore account. Firstly, the tax benefits are fantastic, you do not get charged any tax on the interest you make on your money. Secondly, if you keep all of your account soffshore it makes it easier when doing your tax returns at home – this is especially good if you are an expat and live overseas.


Of course, not everything comes for free. You can’t expect to have so many benefits without paying a little to bank offshore. You should do you research and read all of the small print before opening an account, a lot of services will be free of charge. The main thing you need to look at is whether it is worth your while to transfer the money to an offshore account, check the charges that you will incur. In most cases the amount of benefits you stand to enjoy more than outweigh any charges you have to pay.