Every time an off shore account is mentioned, many people keep wondering; “what will I get in an offshore bank account that I cannot get in a local bank?”
An offshore account has a lot of benefits, and you undeniably need it. An offshore account is a foreign bank account outside your nation. The following are top 5 benefits of opening and running a foreign account.
1. Better Banking Models and Banks
The system of banking in most western countries are essentially superficial. They operate under tight control of and all the promises given by insolvent governments keep coming back to them. To make the situation even more worrying, the banks only keep a limited amount of money to meet daily withdrawal requirements. This is very dangerous. If a sudden Lehman-style financial stress is reported, it will be very difficult to access your cash.
The greatest focus for many people is sprucing their homes and enjoying latest comedies as opposed to the bank they will put savings into. In fact, many do not even appreciate that there are other practical options.
However, there are banks with conservatory operational models and never gamble with clients’ deposits. They keep more cash and operate more responsibly to keep your savings safer.
2. Higher interest rates for client’s deposits
The Fed and European Central Bank have pulled down interest rates to extremely low rates. These very low-interest rates only transfer wealth from savers to borrowers. Indeed, there are very high chances that the interest from the savings is not even at pace with inflation. Simply extend your search abroad to get banks with better interest rates than what you get at home.
3. Better asset protection
In the US, over 15 million lawsuits are filed every year according to Legal Resource Network. With 1 in every 12 adults being involved in a lawsuit every year, expect your turn any moment. Because of the high number of lawsuits, the US has the highest number of top lawyers with eyes targeting your money. With an offshore bank account, you become less attractive to the lawyers.
In addition, an offshore account will help to protect you from government agencies with summary powers to freeze your account at the slightest provocation. This is because the US does not have jurisdiction over foreign banks and, therefore, cannot freeze your assets.
4. Easy access when you need urgent medical care abroad
If you want to access urgent medical care abroad, the offshore account will come in handy. The local health care system such as the disastrous Obamacare or for other reason could force you to look for an alternative abroad. In such cases, you would be required to transfer a lot of money to meet the medical cost.
With the current capital controls, it would be impossible to meet the costs. By having a bank account offshore or abroad that is not subject to such capital controls, you can withdraw all the cash you need for medical expenses you require.
5. You can enjoy some limited privacy
Most western countries require their citizens to reveal the amounts stored in foreign accounts. In the US, you will be required to make a yearly report if your offshore bank account has more than $10,000.
However, you can get some privacy if the amount you store is under $10,000, you are not using LLC or Trust. It is advisable to seek help of a tax expert about the money you should not reveal.