What is offshore banking?
Offshore banking refers to banking activities that take place outside the country of residence of the account holder. The term usually refers to holding a bank account in a country where you do not live.
Offshore accounts and financial services are widely used by global businesses and multinational corporations, as well as individuals with connections in other countries.
What is an offshore bank account?
An offshore bank is a checking or savings account opened in a foreign country. This type of account allows you to store money, make and receive payments in another currency (or even multiple currencies).
It is also possible to open investment accounts, trust accounts and private offshore accounts in other countries.
The purpose of an offshore account is to make it easier to manage money and transactions across countries and currencies. They are often used by businesses or people with property, employment or other connections to another country.
Offshore accounts are also useful for expats who have a UK bank account and perhaps also a local bank account in the country they have moved to. Opening an additional offshore account can be useful for saving, investing and managing money while living abroad.
There is also a common belief that offshore accounts are only for the super rich. This is not entirely true. Especially if you know where to get the information, check out https://www.offshorecorptalk.com/. While offshore accounts tend to have higher fees than regular accounts, and some banks require you to have a minimum income or savings amount to be eligible to open an account, in most cases anyone can open an account.