Friday, April 26, 2013

How Offshore Banking Has Changed the Way People Invest

The way people now invest all over the world have increased immensely because of the stability of offshore banking that has remained secured, reliable and easily accessible to people. People can now think of investing their money beyond the shores of their country just with a few clicks in the comfort of their apartments, transfer and withdraw fund without hassles or stress using offshore bank accounts.

For the benefit of those who have little or no knowledge of this type of banking, this post will cover the following aspects; what is offshore banking? What advantages do offshore banking offer? And the bank of choice with benefits for you.
Citibank Offshore Banking
After reading the first paragraph, you should now have an idea of what offshore banking is. Let me put it to you, what is offshore banking? Don’t be scared, I won’t beat you if the answer is not correct. Offshore banking according to Wikipedia is defined as banking in a location outside ones country of residence, always in a low tax jurisdiction that gives financial and legal advantages.
In addition, it involves deposits by a business or individual in a bank that is in a different country from the one of the depositor resides in. Offshore banking is a viable option for international business because money can be saved on taxes or kept in a secret place. Example of an offshore bank is Royal Bank of Canada.

Quickly, let us look at the advantages of investing in offshore banks. Please don’t mind me, I like to listen and share good news.
Advantages of Offshore banking:
  • Stability because your assets cannot be frozen, seized or disappears. 
  • It can provide higher interest rates. 
  • Interest is generally paid without tax being deducted. 
  • It offers anonymous bank accounts. 
  • Individuals with specific tax advantages can have their offshore bank often linked to other structures like offshore companies, trusts or foundations.

So, how has offshore banking change the way people invest?
Freedom and security: Offshore banking is ideal if you have global financial needs and want to hold some of your money outside your home country. It offers you more freedom in the way you manage your wealth and may help you to potentially gain tax advantages.

Access to investment and offshore accounts: You can access a diverse range of products and offshore bank accounts that might not be available in your home country.

Tax advantages: There may be certain tax advantages to holding a portion of your wealth offshore.

Wide range of currencies: Through your offshore bank account, you can manage your money in a wide range of currencies across the world.

Protection: You can protect your wealth by banking or investing in highly regulated safe and secure markets.

I almost forgot to add the banking services of offshore banks, which includes the following: credit, deposit taking, foreign exchange, investment management, Letters of credit and trade finance, wire and electronic funds transfers. Try to make the best of offshore banking. What is your thought on offshore banking? Or what is your opinion on how offshore banking has changed the way people invest? You can always share what you think.

1 comment:

  1. This is a very useful article about Offshore Banking. Thank you for sharing.

    ReplyDelete