The issue of opening an offshore bank account is usually one that should be taken with caution and preferably discussed in detail with a financial advisor and lawyer depending on ones reasons and each circumstance for wanting to have such an account. Most people usually over look the benefits associated with owing an offshore bank account because of the negative media exposure of owners of such accounts who abuse the services to launder money, conceal money for divorce purposes, commit tax evasion or engage in other types of fraud. This article provides information on the benefits and disadvantages of free off shore bank accounts.
Benefits of Offshore Accounts that Offer Good Interest Rates:
Most if not all offshore banks offer services quite similar to those provided by domestic banks. Other than acting as regular savings accounts, a free offshore bank account gives its user the option of having a credit or debit card from which to access funds. Some of these banks also offer to sell you mortgages and other types of loans from your account.
Because offshore loans are not regulated in the same way that domestic banks are, interest rates on mortgages and loans are usually offered at much more competitive rates than those in domestic banks. This allows holders of offshore accounts to have their mortgage paid off in convenient financially stress free way.
In addition to the above, such bank accounts are able to offer their account owners higher interest rates on deposits; which generally allow you to get more out of your savings. This is because offshore banks basically compete for business which will expectantly bring in revenue to its respective country in addition to the required low over head costs, which tend to be lower than those offered by domestic banks.
Benefits of Offshore Banking and Loans for Companies:
Most global companies today are also opting for these bank accounts due to the benefits associated with their loans. Companies that opt for these non-domestic bank accounts are typically afforded the same rights of privacy as personal/individual account holders. Having offshore business bank accounts allow companies to finance their operations at much more affordable or reasonable rates than if they were to keep their banking needs strictly domestic.
Because offshore banks are generally not regulated by the government to the same extent as domestic banks, these financial institutions are able to provide a wider variety of investment alternatives to both individuals and companies seeking higher rates of return than those typically offered in domestic banks.
Disadvantages of Offshore Banks
The main disadvantage of these banks and accounts is that they require a large sum of cash as deposit and have substantial maintenance or annual membership fees if you are not familiar with all the terms of agreement. Having a knowledgeable advisor provide you with recommendations and free offshore bank account suggestions to can be quite useful particularly for those people who wish to have their mortgage paid off stress free.
Atanu Shaw is a professional loan consultant with experience in free offshore bank account