With the advent of the information age businessmen are finding hundreds of ways of improving their businesses and increasing productivity by incorporating the internet into their daily business lives. This has had tremendous positive implications in the global trade market. With increased connectivity, large numbers of men and materials are easily handled by the new age managers. The banking sector is no different with people these days being aware of the best suited deals for their businesses. Offshore banking has had a huge fillip with even the common man being made aware of the numerous advantages one enjoys if he or she maintains a private offshore account.
Benefits of Having an Offshore Account:
Offshore savings firstly give the account holder a sense of security because of the private nature of these holdings. Only the bank and its trusted officials would be aware of the bank’s clientele. This too would be strictly monitored by a responsible offshore bank due to the obvious sensitive nature of customers identity and their intimate account details.
Investment Risk is Lesser for Offshore Banks:
Savings being an integral part of a hard working citizen’s long term plans, every person begins to think about saving assets for a future emergency the minute they begin their career. But with today’s economy, investment in risky ventures is at an all time low and the common man is quite wary of making any risky investments whose outcome is anybody’s guess. Hence banks are more popular these days due to the stable nature of its returns and a fixed deposit maintained at a reputed private or public bank is given importance.
Interest Rates Followed in Major Offshore Banks for Term and Short-Term Savings Deposits:
Offshore banks give a reasonable interest rate to those seeking to increase their holdings in a steady and trusted manner. You can be rest assured that there would be no untoward losses once you deposit your money. You can enjoy the double benefit of not being overly taxed like you would in your home country and also have the satisfaction of seeing your deposits grow over time. A healthy interest rate of 4.25% is offered for those who deposit a minimum of $10000 for a period of one year in a good offshore bank. The interest rate varies as per the currency in which the deposit is made. Normally the interest rate increases slightly if either the duration of deposit or the amount deposited increases. For example a five percent interest rate if offered for a minimum deposit of $100000 over a period of at least two years. So, the more money you deposit for longer periods, the larger the benefits you enjoy!
If you are apprehensive about tying up your money for long periods of time then you should consider investing in an offshore savings bank account. A savings account would enable the depositor to withdraw their money on short notice without disrupting the long term deposits. Although the interest rate is lower at 3.25% for the U.S. Dollar, one enjoys greater flexibility in terms of money usage while still having interest flowing in due to one’s assets. The majority of respectable offshore banks follow similar interest plans as mentioned above. Before choosing the offshore bank to invest in, do be sure to check out their reputation with former customers and the genuine feedback they offer about the bank. Offshore banks are usually present in countries where the taxation laws are not as hard-hitting as countries like the United States and other major nations.
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