Choosing the right Offshore Bank and Bank Account

Overall, the focus of our information has been on offshore jurisdctions and the advantages of choosing certain jursidictions. However, enough stress cannot be put on the importance of chosing the right offshore bank for yourself.

The most important think to see is the crdibility of the bank. Many people will not even be visiting the coutnry where they are opening an offshore bank account. It is therefore important to know that not all offshore banks are alike. Some will be a part of large international groups while others will be small regional banks. Similarly, some banks might be struggling with risks to bankruptcy. There is no point in opening an offshore account in a risky bank to secure you assets and banks do go bankrupt around the world including offshore jurisdicitons. Therefore, a reaserch on the banks is important to understand their current financial poistion and standing. It is usually better to save in a stable and secure bank both within the country of residence and offshore.

Furthermore, not all banks provde similar services. Most banks have specialized in dfferent spheres of the banking industry to create a niche for themselves. When selecting the right bank for yourself, one should match the type of accounts with the services provided by the bank. A bref guide is provided below:

1.       General services for all banks: Telephone Banking, Debit and Credit Cards and internet banking.

2.       Saving Accounts:   People interested in opening savings account or term deposits will need to evaluate banks in terms of long-term performance and interest rates. Many banks offer different interest rates in same jurisdictions and choosing the rght bank will maximize your return on wealth.

3.       Merchant Accounts: Merchant accounts are only useful if the bank has agreements and servces with all debt and credit card provider (Visa, mastercard, AMEX etc.). Ideally, merchant account should be opened in a bank, which can also accept online payments through pyapal etc. to give complete freedom to merchant for international and online business.

4.       Corporate Accounts: Corporate accounts require various services especially those related to international trade. A good bank will offer services related to international trade like issuance and acceptance of various types letter of credits, Gurantees and fund transferr. In addition, banks with good balance sheet strength that can also provide loans for various businesses of beidge financing are much more beneficial for opening a corporate account.

5.       Accounts for foreign investments: Investments is a specialized field and while opening a bank account to avail opportunities for international investments, it is veryimportant that the bank chosen should have advisory department and good experience in dealing with and offering international investment products. The bank should also have access and research on international investments around the world to truly cater for the needs of the client.

6.       Further Services: Many but not all banks offer services like tax and accounts advsory or have agreements with international and reputed companies to provide these services at lower costs. These services canc ome in handy for investment and tax planning of prospective account holders who do not have such specializations vailable to them.

Many large banks like HSBC and Barclay’s have many offshore centres and branches. While operating an offshore branch, they are very conscoius on safeguarding the privacy of the clients. However, some much smaller and more exclusive banks offer much better investment advice at lower costs. It is therefore very important to research the banks and taking advice from your consultant before opening an offshore bank account.

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This article is brought to you by the DeltaQuest Group. For more information regarding Offshore Banking and the Opening of an Offshore Account, please visit My Offshore Accounts.