Offshore Company And Offshore Bank Account Benefits

 

Offshore banks provide a wider range of banking and investment options offering higher returns
Having an offshore account, and especially an offshore investment account, enables you to access various banking products and investment options not otherwise available in your own country. This can lead to much higher returns on your offshore investments. Many offshore banks specialise in providing such services for this very purpose.

Protection from economic and political risk
In this age, one of the biggest threats to your hard-earned savings is political and economic instability. An offshore company can help safeguard you against that instability. In many countries, shaky and corrupt political structures can lead to sudden and unexpected loss of much of your personal wealth. Account seizures, freezing, complete devaluation (due to collapse of currencies) are all very real risks (which can happen just about anywhere). 

Having an offshore account is the greatest protection one can have against such threats, as your money will be far removed from the potential problems which may arise in your home country. There are a number of very accessible offshore banking jurisdictions which are renowned for having extremely safe and stable political and economic environments (e.g. Singapore), so you can rest at ease knowing that your money is in much safer hands. 

Higher interest rates
Standard interest rates on bank deposits in the West are abysmally low. Many banks offer interest rates which do not even keep pace with inflation, meaning the real value of your money would actually decrease over time, and there are even a few shocking examples of countries where banks have negative interest rates. 

On the other hand, there are many foreign jurisdictions that offer very favourable interest rates. Opening  an offshore account in any of these jurisdictions therefore guarantees you a higher return without any additional risk or hassle. 

Access to safe and stable banking systems
As was previously mentioned, many Western banking systems are well-known to be incredibly unstable and poorly structured, and the United States is no exception. In fact, the U.S. probably has one of the most questionable banking systems of the lot, but we won’t go too much into that now…

What is more important to know is that there are actually nations out there which have extremely safe and stable banking systems, with many very reputable banks to represent them. One measure of bank safety is the amount of capital reserve the bank is required to keep to back deposits. In the US and UK this figure is generally around 5% whereas there are foreign jurisdictions which have average capital reserve ratios in excess of 20% (e.g. Belize and Cayman Islands). This, along with many other factors, makes these banks a much safer home for your hard-earned wealth. 

Diversification of wealth and investments leading to greater overall security
One of the most effective ways to ensure financial security is to spread your assets across different accounts and international jurisdictions. This means that you are no longer reliant on one system, and are much less impacted by its individual shortcomings and potential collapse. 

 Proper diversification of assets is key to obtaining both optimal returns and safety. Many simply diversify their wealth across different accounts and asset classes within a single jurisdiction, failing to understand that this is a very limited and incomplete strategy, as it does not protect them from the overall risks which could affect the entire system within which they are operating. 

Therefore, real diversification means not only a mixed asset portfolio within one jurisdiction, it requires spreading your portfolio across different jurisdictions. This is really a necessity if you want to provide adequate protection to your wealth. Opening a number of offshore accounts in different foreign jurisdictions is one of the simplest and most effective ways to go about this.

Something to consider
Unfortunately, it is starting to become more difficult to open an offshore bank account. There are an increasing number of hoops to jump through to be able to open your account. This is why it is so important to act quickly and open your offshore account today! 

There is no time like the present, and putting off this valuable opportunity could mean letting it slip out of reach. Also, one cannot afford to wait until after everything goes downhill in your own country, as by that time it is already too late to protect your wealth.

 So even if you do not feel you will need or make use of an offshore account immediately, it is still in your best interest to open one, however small and insignificant it may be. This will give you the ability to act quickly in the future and respond to whatever situation may arise.