Offshore bank accounts are often utilised by expatriates and those who regularly live, travel or work overseas and who require increased account flexibility. Because there is so much choice offered by offshore banking providers nowadays one of the main criteria those seeking an account often apply is that it should offer a high rate of interest.
High interest offshore bank accounts are not particularly easy to come by however, and instead it might be wise to create an entire offshore banking package that will incorporate basic current account flexibility with a higher interest savings account.
Standard Bank Offshore are one of the main offshore banking providers to advertise their offshore package solutions to expatriates. They are also one of the more reputable offshore banks as they operate from premier jurisdictions where the legislation governing the actions of financial service providers is tight such as the Isle of Man or the Channel Islands for example.
As part of their expatriate banking package, Standard Bank Offshore suggest the use of an ‘Optimum’ account for more regular transactions where a low interest rate is paid which is calculated on the daily cleared balance and paid quarterly. In conjunction with this they suggest that a special expatriate savings account is utilised where a higher rate of interest is paid annually. The rate of interest paid is linked to the bank’s base rates but it always remains competitive and encourages the expatriate to save regularly with the bank.
In terms of the interest rates that offshore bank account holders can expect to earn, often the rate will depend on the amount deposited in the account and the frequency and regularity of deposits. For some who bank offshore, interest will be paid gross without the dedication of taxation which naturally means an account’s growth can be compounded and speeded up.
High interest offshore bank accounts in jurisdictions other than those regulated carefully should be considered high risk. Naturally more attractive interest rates can be offered to attract new business but an individual should be careful in their choice of account type and offshore banking provider and do due diligence on the bank and the jurisdiction before committing any money to an account.
It’s worth looking around for higher interest paying account offers on a regular basis as banks are always trying to attract new custom. Furthermore many of the larger banking institutions are able to customise an account package for those with complicated or unusual banking needs and as part of the package a higher interest generating offshore savings account may be available.
