Description: Know the answers to 8 frequently asked questions on offshore banking and enrich your knowledge.
8 Frequently asked questions on offshore banking and their answers
An offshore bank is a bank which is situated away from the country of residence of the depositor, usually in a low tax territory (or tax haven) that offers both legal and financial benefits. The benefits normally include the following:
Higher privacy
Simple accessibility to deposits
Tax havens (low or no taxes)
Security from financial or political imbalance
Offshore banking is legal. Many investors are curious to know about this type of banking. The increase in international travel along with the growing application of Internet to earn a livelihood or handle businesses from a distance has resulted in development of offshore banking and offshore trusts. Other individuals have decided to move out or diversify their financial investments and set up offshore accounts in an offshore bank. Now if you want to keep your money in an offshore bank, a number of questions can arise in your mind. Given below are some of the common questions asked by investors together with their answers:
1) Do I need to tour abroad to bank offshore?
No. You don’t need to visit your offshore bank. You can easily bank from anywhere in the world you stay through e-mail, Internet, telephone or post. You can use a touchtone phone or talk to your banking representative or registered offshore banking agent.
2) Is it legitimate to have an offshore banking account?
Yes, it is completely legitimate. Many individuals and companies have been regularly using offshore banking in a legitimate manner for a number of years. Since many nations promote international business, there are typically very few limitations on individuals carrying out business or having bank accounts in overseas locations. Nevertheless, reporting necessities on these accounts vary from one nation to another.
3) What are the services provided by offshore banks?
These banks typically provide the following services:
· Deposit taking
· Wire transfers and electronic funds transfers
· Credit
· Trade finance and letters of credit
· Investment custody and investment management
· Fund management
· Trustee services
· Foreign exchange
· Corporate administration
4) How can I get an offshore account?
There are many companies that offer specialized services in establishing offshore accounts. You can talk to one of them. These are secure and outstanding services.
5) Is it simple to use offshore banking?
Yes. With e-mail, the Internet, telephone banking, fax and the usage of ATMs, you can access your money as you access it from your local bank account. You can conveniently and promptly transfer your money across the world through electronic funds transfer and can efficiently bank from any place in the world.
6) Can I get a credit or debit card?
Yes, you can get an internationally acknowledged debit card and access cash from ATMs all over the world.
7) What is the minimum deposit needed to open an account?
It is dependent on the type of account you select. However, you can begin with a deposit of US $1,000.
8) Which currencies can I use?
Accounts are available in all principal currencies including Euros and US dollars.
