Why Save Offshore?

Having an offshore bank account if you travel frequently, own property abroad or are planning on retiring overseas at some point in the future makes sense, as does investing offshore if you want access to a broadly diverse range of investment vehicles, fund managers etc., - but why save offshore?

What is the point of having an offshore savings account when you can gain access to accounts in the UK or your country of domicile/residence that pay decent rates of interest for example?  Well, there is one very good fundamental reason for us all to consider an offshore savings account and, depending on our personal circumstances, there could be more than one reason to save offshore!

The one reason that we should all bear in mind when considering which savings account is most appropriate for our short to medium term financial needs is that offshore savings accounts and vehicles often allow for tax deferred growth.  What this means is that a qualifying account allows any interest earned to be rolled up without the deduction of tax at source and this can of course give our savings an instant lift.

Tax has to be paid eventually and when tax has to be paid depends on the nature of the savings policy and also when you have to declare the interest earned to your current taxation authority – a financial adviser can guide you about your options and obligations.

But it is the fact that the payment of tax is deferred or postponed that gives you leverage within your offshore savings account and this is why we should all consider establishing such a savings vehicle.

For others of us there are additional reasons to save offshore.  These depend on our circumstances of course – but an expatriate living abroad and looking at offshore investment and saving as a way to offset their tax burden, diversify their portfolio and put away enough today so that they don’t have to worry about their financial future could very well benefit from a simple offshore savings policy because it can allow them to grow some wealth that is easily to hand for when they require a lump sum to pay for school fees for example, or for the purchase of property or a car maybe.

All the leading financial institutions and banks in the best offshore centres - from Jersey to the Isle of Man and from Luxembourg to Switzerland - offer an array of offshore savings product.  With the help of a financial adviser who can ensure you’re taking the most appropriate financial action, you can find the savings policy most suitable for you.