Offshore Savings Account

An offshore savings account refers to an account in which money is saved in a foreign country. Savings accounts held offshore usually present the same benefits as a saving account held in a local bank; but, offshore savings provide a much greater degree of privacy since offshore banks are protected by secrecy laws which prevent private offshore banking information concerning the transactions of offshore account holders from being divulged. Moreover, offshore savings provide a means for protecting assets, which can be achieved through the fact that offshore banks are secure and safe institutions that are supported by well defined banking laws.

An important aspect of offshore savings is the ability to have easy access to funds held in an offshore bank, open accounts in different currencies (multicurrency accounts), enjoy higher interest rates than normal and transact from anywhere in the world at any time and hour of the day. Offshore savings accounts may be either held in the name of an individual or establishment and can be used for a limitless trading, commercial and personal reasons.

Simply holding an offshore investment account can be viewed as investing or insuring a person’s future or that of a family or close relatives since the funds kept in an offshore savings account do not necessarily have to be consumed or withdrawn on frequently, and can be used for retirement or in the event of serious emergencies or illness. In this regard, fixed offshore deposits are beneficial and help to ensure that the funds deposited in an offshore bank are not used immaturely. Offshore banks generally provide many different types of offshore savings plans that help persons to better plan their taxes and finances for pending events such as the Christmas seasons (Christmas accounts), unemployment, retirement, as mentioned previously, purchasing real estate, college funds and constructing a home.

For persons residing in economically, socially and politically unstable countries, opening an offshore savings account would also mean peace of mind by being granted access to countries with sound political regimes and economies and undertaking international investment opportunities which can be facilitated by a range of offshore banking services. In the event that a government or country should fail economically, then monies held in an offshore savings account will be protected and safe.

The increased formation of offshore savings accounts helps to fortify financial service industries in offshore tax havens and create numerous employment opportunities, thus reducing unemployment and increasing economic development through the revenue earned from the offshore sector. This enables Third World and developing countries to enjoy a greater degree financial independence.

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