Many people used to consider offshore bank accounts as only being relevant if you had huge funds to invest and wanted to avoid tax liabilities in your current country. Today however, many expats use offshore bank accounts to enable easy access to their money as they move between countries or send their children to study abroad.
The advantages of an offshore bank account
- Easy access to your money
As an expat, you might be being paid in one currency and have to pay bills back at home or educational fees abroad. An offshore bank account is designed to take into account the needs of an international business person and facilitates easy currency conversion. You will be able to complete transactions in multiple currencies and have full access to your funds, no matter where in the world you are residing. For added convenience and to make dealing with time zones easier, they are often open 24 hours a day.
- Currency diversification
If you want to invest your money, holding different currencies can be a good way to diversify your portfolio. Many local banks don’t offer huge options in terms of holding foreign currencies, whereas offshore banks offer convenient online platforms for holding foreign currencies.
- Special services
Offshore banks are geared towards the international traveller and often offer services your local bank won’t. You’ll be able to set up your bill payments in more than one currency and fix currency amounts for a year or more in advance. You’ll also likely benefit from discounted international payments and foreign investment opportunities
- Investment opportunities
An offshore jurisdiction will open up more options with regard to investments and financial products – which are often more tuned to the needs of an expat investor. You will find investment products that are not available in your local bank and options that will help you grow and develop your wealth.
- Peace of mind
An offshore bank account, which you can access from any country in the world, is like an insurance policy when you are travelling. It also protects you from banking systems that are less than sound and enables you to easily access funds if you need money for an emergency.
Making the most of offshore banking
If you’re planning on investing money offshore and need financial advice, contact us today. We’re here to help you unlock your South African wealth and put you on the path to financial freedom in your new home.