When you’re growing your wealth, you need to always be aware of the different funding and financing models available. Offshore banking provides an incredibly popular option.
These are international bank accounts that let you store your money, grow interest, and take advantage of a host of benefits. Before you open an account, it’s important that you do your due diligence and research all you can.
Below we’ll dive into some major perks of offshore banking, and why it’s worth your time.
1. You Can Lessen the Blow of Bureaucracy and Political Conflict
As you well know, bureaucracy, changes in laws and ebbs and flows of the market change a lot about the way you bank. Financial institutions are subject to changes and calamities, all of which can trickle down to the customer.
For instance, bank bailouts and controversies are a fact of life and can affect your bottom line as a customer.
When you spread your money out among offshore accounts, it makes it easier for you to dilute the risk involved, and leaves you less subject to bureaucracy and hangups.
2. It Helps to Diversify Your Savings
What’s even better is that you have different avenues for keeping your savings. You may want to earmark different accounts for holding specific types of savings.
For example, you may want to have an account specifically for business savings and another to hold your estimated tax money. Having access to offshore bank accounts maximizes your ability to spread your money around between different savings models.
In fact offshore financial institutions have mutual funds, retirement accounts and other high-yield investment models that you can look into.
3. You’ll Receive Better Interest Rates
Perhaps the biggest immediate perk you’ll see is that offshore bank accounts generally have better interest rate yields.
This means that while your money sits in the account, it is accruing higher returns than you would get with domestic bank accounts. Putting your money in a high-interest bank account lets you get more bang for your buck, as opposed to breaking even.
Foreign bank accounts also generally get you favorable tax rates, which can keep even more money in your pocket.
4. The Offshore Accounts Can Protect You From Lawsuits
We live in a litigious society, and millions of lawsuits are filed every year.
You will need some protection from these potential lawsuits so you can weather the storm. Since the government has the right to freeze your bank account in some situations, having access to an offshore account allows you to get protection from this.
It can be difficult to make moves how you need to when your bank accounts are tied up. Having a couple of offshore accounts will allow you to have more breathing room while you undergo litigation.
5. You Will Learn Different Currencies and Markets
When you bank internationally, it’ll expose you to different currencies.
This allows you the opportunity to grow your business interests internationally and become more aware of world markets. You’ll get an ongoing glimpse at exchange rates and how they affect your business, and will also introduce you to opportunities that you might not have considered.
6. Having an Offshore Account Can Help You Operate an International Business
When you do serious business overseas, you’ll often have an easier road when your bank also has a presence in the country. Your transfers will go through quicker and without holds, and you can visit branches in-person if you’re traveling on business.
It makes it easier for you to send and receive foreign payments when you also have a bank account in the country. This way, your clients and associates will find it easier doing business with you, and there will be fewer holdups.
7. Offshore Accounts are Easy to Use and Access Today
A major perk of opening an offshore bank account is that they are more widely available and easy to access than ever.
With a lot of these bank accounts, you can get set up remotely, just as you would opening many bank accounts in the United States. In most cases, you’ll transfer money from an existing account via electronic transfer, and you can get up and running with your offshore account fairly quickly.
You must be sure that you always report your offshore accounts so you don’t run into tax fraud or other issues that come with the territory. While several people own offshore accounts, some people and businesses run into trouble because they assume they don’t have to report this income.
Prior to opening up an offshore account, one of the best things you can do is reach out to a team of financial professionals that can give you some advice and steer you in the right direction.
Get Into Offshore Banking
When you get into offshore banking, the benefits are innumerable. There are a variety of offshore banking accounts that you can take advantage of, but it always pays to know what you’re signing up for.
Before opening an offshore bank account, you should definitely consider getting in touch with some financial professionals that can guide you.
In that regard, we’d love to help you out.
At the Silver Tax Group, we can help you out with planning and managing any offshore assets. We can also protect you and guide you if you get audited or if you run into any other tax related issues.
Always contact us when you need help with your finances, taxes and so much more.