19 Apr Seven reasons to open an offshore bank account
What’s the difference between having a local bank account and an offshore bank account? An offshore account, also known as an overseas or international bank account, is an account that is based outside of an individual’s home country. Many people who need to deal with the complexities of international life, for instance, expats who are moving abroad for work or retirement or investors managing assets in multiple currencies across several countries typically open an offshore account to make life easier.
They are useful tools for savers who are keen to surpass the record low interest rates offered by their local banks whilst high net worth individuals (HNWIs) find them useful for enhanced privacy and security. But offshore accounts are not just for the ultra wealthy. Here are seven legitimate reasons why it makes good sense to open an offshore savings account today with Vivier & Co.
1. Protect your assets
An offshore account is the most basic form of asset protection. It can help to protect account holders from becoming financial targets, of litigation or even governments, that are proposing to make it easier to freeze assets and/or block access to bank accounts when certain criteria are met.
Once the offshore account is opened, savings are guaranteed and placed beyond the reach of government agencies in the country of residence. In this way, they can’t be easily confiscated, frozen or devalued and, more importantly, the funds can always be accessed when they are most needed.
2. Diversify your portfolio
Holding liquid capital in multiple currencies is a basic hedge against country risk. It’s also a practical way of diversifying portfolio risk, protecting purchasing power and “internationalising” savings. Local accounts typically offer few and/or expensive options for holding foreign currencies. In contrast, offshore banking offers depositors convenient online platforms for holding multiple foreign currencies.
3. Enjoy higher interest rates
For savers who are tired of the historically low interest rates available in their home country, offshore banking offers access to significantly higher returns. For example, Vivier & Co offers guaranteed savings with favourable rates of interest.
It’s a fact that Central Banks are keeping interest rates at all-time lows. In short, these artificially low interest rates transfer returns away from savers to borrowers. Although interest rates have just started to climb, they’re still well below historic averages. However, savers who take the time to look offshore will find that there are financial services firms out there, such as Vivier & Co, that pay significantly higher interest rates than local bank accounts on savings accounts.
4. A quick response
Having access to an offshore account, regardless of the amount of money it contains, offers savers significant benefits. In addition to modern, convenient online banking, enhanced customer service, worldwide ATM access, MasterCard managed accounts, confirmed deposits and higher interest rates, it also enables depositors to act quickly to transfer more money overseas should the need ever arise.
Indeed, it’s becoming increasingly more difficult to open a bank account, let alone one offshore; one day it could may well become impossible. Therefore, even if they don’t plan to use the new account immediately, savers should act sooner rather than later.
5. More than one basket
During the financial crisis, some of the world’s largest banks collapsed overnight. In Europe, the Spanish and Italian banking systems required multiple bailouts. The Greek banking system is still in permanent crisis. In 2013, the banking system in Cyprus also became insolvent, with its government freezing bank accounts and confiscating funds from wealthier savers.
With these events in the not so distant past, holding 100% of your funds in one place runs the risk of putting all of your eggs in one basket.Therefore, holding some savings in an offshore account makes good sense and can provide insurance against bank risk whilst providing access to emergency funds.
6. Peace of mind
We already know that opening an offshore bank account can help to protect savers from the actions of bankrupt governments and the fallout from precarious banking systems. Taking this sensible step to protect yourself should also provide peace of mind. At Vivier & Co, we still follow traditional, conservative banking practices. We aim to hold strong, conservative levels of capital and liquidity, and are always extremely careful with our customers’ hard-earned funds.
7. Personal freedom
Without doubt, having an offshore bank account offers depositors more options, which in turn results in more freedom. By using a MasterCard debit card linked to an offshore account to pay for international expenses and all foreign purchases, savers can maximise their privacy when travelling or residing abroad.
Vivier & Co can help you to open an offshore savings account today that will help to manage, protect and grow your money.