The Best Offshore Bank Account

Summary: We guide you through the five main considerations you need to have in mind when opening a secure and private offshore bank account

As with any type of bank account you have a choice when it comes to determining which offshore bank account best suits your needs and requirements.  But with too much choice can come confusion!

There are literally thousands of international banking providers out there all offering a range of accounts so how on earth can you find the best offshore bank account?  This article guides you through the five main considerations you need to have in mind when doing your due diligence and research and should lead you closer to finding that perfect bank account!  Alternatively, if you want to save yourself time you can simply fill in our offshore advice service form and we’ll do the hard work for you and find the most applicable offshore bank account or solution for your personal requirements…

1) Banking Provider Considerations

To ensure the security of funds placed in an account, any banks you consider should be located in a secure offshore jurisdiction where they are subject to the regulation, supervision and licensing of an independent statutory body.  For example, offshore banks in the Isle of Man are governed by the Financial Supervision Commission which is responsible for protecting the public interest by governing the entire financial services sector on the island.

Furthermore you should satisfy yourself that the particular bank you’re interested in has a reputable parent company and has a good reputation, pedigree and history.

2) Safety, Security and Privacy

A large percentage of those people who wish to open an offshore bank account are seeking a degree of safety, security and privacy that they find is no longer afforded to them, their financial assets and transactions in the jurisdiction in which they live. 

Unfortunately many offshore jurisdictions cannot ensure total privacy anymore because they are being forced to crack down on criminal activity such as money laundering etc., and the legislation in place to prevent these criminal activities also ensnare and render ineffective the general assumed benefits of ‘going offshore’ for many legitimate people simply seeking an extra degree of privacy.

Make sure that any offshore jurisdiction you prefer can offer you the levels of privacy you require and that they are also secure and safe in that they are regulated and are politically and economically stable countries

3) Account Costs and Transaction Fees

There are massive differences in account costs and transaction fees and many of us simply ‘forget’ to look at fee structures when opening a bank account.  These details are always available to you so make sure you compare accounts and their charges and ensure you’re comfortable will all you will have to pay.

Because offshore bank accounts usually come with extra account options and features such as the ability to bank and transact in more than one currency etc., they are often more expensive than a domestic current account.  The fewer features you require the cheaper the offshore bank account so if you make a mental note of the features you do require and then rule out accounts with extra features that you don’t require in your hunt for the best offshore bank account you’ll be doing yourself a favour and saving yourself potentially a lot of money!

4) Interest Rate Payable

Many people assume that offshore bank accounts pay higher rates of interest than domestic current accounts.  This is unfortunately no longer the case - although it can seem as though you are getting more interest on your account deposits as interest is usually paid gross - i.e., without the deduction of taxation - it is up to you to declare interest earned to your tax authority.

So, check out the levels of interest you will earn on your offshore current account and consider setting up a back to back term deposit account which pays more interest and into which you can transfer ‘excess’ funds from your basic account.

5) Customer Service Levels

Last but by no means least many banks have forgotten the art of looking after their clients - you have become an account number to them and they have become a call centre or worse still an automated telephone service to you.  This is all well and good when all you want is a balance enquiry but when you want advice on how best to structure your account, how cheaply or swiftly you can send money around the world, where best to invest or how to get your hands on a credit card or loan you need a slightly more personal and professional level of customer service.

Grill any potential banking providers you’re considering opening an offshore bank account with and make sure they meet with your approval fully.  Don’t give banks a chance to give us any worse levels of customer service than they already get away with!

Finally, the best offshore bank account for you will depend a great deal on your personal circumstances and account requirements.  If you need advice make sure you get independent assistance and always do full due diligence before trusting anyone else to look after your money!  We can help you if you’re looking for a bank account, a tax solution or an asset protection plan for example, contact us with your requirements and we will endeavour to find you the best solution possible.

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