Having an offshore bank account is very much beneficial. If you are an expat then probably there are more advantages of having an offshore account as compared to disadvantages but still cons still exist. How you choose to manage your personal finance is always your choice but still offshore banking helps you to manage your personal finance and investments and it also lets to make savings in more efficient manner. Advantages and disadvantages of offshore banking also depends upon the place where you choose to open your account as some of them avails with more services as compared to others. Thus it is advisable to make proper research as to what are the advantages and what are the drawbacks of opening an doing offshore banking. Here is a detailed explanation of advantages and disadvantages of offshore banking compare it to your personal needs and circumstances and find out the best way to move forward or not according to your individual situation.
- In case of offshore banking, you can do banking in different currencies; you can even do banking in multi currencies. This is really a great advantage as if you have payment in US dollars and you want it to be converted in different currency, you can put in the account of dollars and wait for the right time when the exchange rate is in your favor and convert it at that time. This can really be a great benefit for you.
- If the nation in which you reside is not stable economically and politically then keeping your savings in offshore account can really be safer option for you as your money is not affected by inflation or war circumstances or currency devaluation.
- If you are an expat and if your country has a rule in which you have to pay tax on only that amount which you remit in that country then keeping your money in offshore account can really avail you with a lot of tax benefit.
- Offshore banking is really beneficial as they avail the maximum flexibility and you can access your account t at any corner of the world.
- Offshore banking also offers you with more amounts of privacy and security as compared to that of local banking.
- There are many offshore banking which charges less then local banks and also avails you with higher rate of interest as compared to that of local banks.
- As compared to that of local banking, offshore banking is historically more risky.
- Offshore banking is taken more as illegal and illegitimate source of money done more for tax evasion and money laundering activity and hence even if you are having legal money you can be anytime caught in the eyes of law as doing something illegal with offshore banking.
- You must have proper knowledge about the terms and conditions of offshore banking account as to whether there is a higher fee to be charged if minimum balance is not maintained in the account.