Offshore banking means transferring money and assets overseas to be managed by banking institutions in jurisdictions outside of your country of residence. The origin of the term offshore is related to British Channel Islands which are situated physically away from the main land. These islands provided complete freedom from taxes and as a result became every investors’ final destination to invest freely and let their money grow. Banking institutions did not let this opportunity to go past and they started to operate from these islands making the most of the investment scenario.
Subsequent growth came from other countries which followed the same route and offered similar benefits. These days the term signifies having properties anywhere outside the country of residence. Normally these locations have laws which backs offshore banking. Such laws would ensure that banking institutions maintain strict secrecy and privacy. Managing offshore accounts can be done in several dubious ways as the laws in this area are rather fluid.
There is no dearth of help and information in case anyone is looking for them regarding offshore banking. It is to be noted that professional guidance must be sought before any investment decisions are made. The international banking system is filled with rules and regulations which are rather slipshod, thus care must be taken to avoid the related risks before you make any financial commitment.
It might require a deposit of a lump sum amount of money. The money that we are talking about could be anywhere between 2 and 10 thousand dollars but it could vary according to the time duration of holding as well as the kind of account. The more you keep your money in the bank without any transactions, the higher the rate of interest. Since this would largely depend on your choice of offshore banking institution, it makes sense to consult an expert before making any investment.
Depending on the banking route chosen, the initial deposit as demanded by offshore banks could be really low even one dollar. Only one document is required by some banks. One can witness this from a bank like HSBC whose advertising slogan is ‘the world’s local bank’ and their customers can operate through their online banking services and manage their account irrespective their physical location. HSBC is famous round the world as a bank which is responsible for developing few of the most customer-friendly and easy-going international banking systems and this accolade makes them one of the most sought after banks in the industry.
Information related to offshore banking is freely available from the internet or offline resources. A wide variety of free information on offshore banking is out there to make you more savvy in the matter and help you make right choices. This type of free information can be available to individuals or companies but business data would cost money in case they wish to enhance their profits.
The fact that trillions of dollars are handled everyday makes offshore banking one of the biggest financial industries in the world. The competition has become fierce and banks are willing to offer more for less or free to attract new customers and to inform people that could benefit the most from their services.
Author: thulasThis author has published 21 articles so far.