If you’ve always thought that off-shore bank accounts don’t sound quite legitimate when it comes to holding your savings and assets, you might be surprised.
There are many reasons why opening an off-shore bank account could be the right choice for you. To explain a bit more, we’ve come up with five reasons why you should open your own off-shore bank account.
1. Minimises risk from political changes
We’re living in unprecedented times when it comes to governmental changes with Brexit affecting the future of the economy in, as yet, unspecified ways. This always affects banking and finances, and often the largest risk to your money plans, whether you’re saving, investing or both, comes from moves made by the government.
Sometimes it can seem that the government really isn’t the best entity to trust with your financial security – something that has been shown over and over with various austerity measures and periods of recession. By storing your assets outside of the country, it is therefore protected for any political risk from that country’s government.
2. Extra protection for your assets
You may feel it’s a situation that will never happen to you, but with an increasing number of lawsuits filed every year in the UK, asset protection is more pertinent than ever.
It’s impossible to predict with 100 per cent accuracy whether you will ever be subject to any kind of lawsuit, and a great way of protecting your assets is to entrust them to off-shore banking.
3. Portfolio diversification
A good way to make sure you have a diversified portfolio, which offers your investments more protection in the long run, is to hold multiple currencies. Domestic banks don’t necessarily give you the option to work in and buy foreign currencies, while off-shore banks do.
4. Higher interest rates
In the UK, interest rates remain low. They never seem to shift much in a way that benefits the customer, which is obviously not ideal when it comes to return on investment. Often off-shore accounts will offer higher interest rates, which could help you make more from your money.
5. Easier to take protective action
Assets stored in an off-shore bank account are generally more accessible than those in domestic bank accounts. This means that if your assets could be damaged by government legislation, or any other reason, you can take protection action faster with an off-shore account. It gives you a level of protection against any legislation in your home country.
If you’d like to look further into the option of opening an offshore bank account, and aren’t sure how to start, then contact Turner Little here.
