Concept Of OFFSHORE BANKING

In a highly competitive and rapidly changing today, individuals and businesses need to have easy access to their money with an early warning. Sometimes, laws and regulations in the countries of origin are strict regarding the withdrawal of the enormous sum of money. They then look for countries that have less strict guidelines to create bank accounts, known as offshore bank accounts.

Offshore banking helps to protect the finances of an individual. In today's world the enormous taxation, you must have a good plan to deal with numerous financial problems. Offshore banking helps to reduce the additional taxes paid by an individual.

The concept in practice means that they have bank accounts in banks outside of your country. Offshore banking provides financial and legal advantages such as privacy, protection against the restrictions of the budget law, or local political instability, and reduced.

Services  By Offshore Banking

The services offered by offshore banks are almost similar as you would expect from banks in his country. All offshore banks allow an individual to withdraw or deposit money. Offshore banks usually issue credit cards in order to help an individual farlo.Le credit cards issued by offshore banks function just like other credit cards. An individual can also use credit cards, like ATM worldwide.

Wide range of financial services offered by banks provide offshore business administration, fiduciary services, custody of investments, trade finance and letters of credit and deposit. In addition to these, offshore banking also offers additional services for some of its selected customers:

• Fund Management
• Investment Management
• Currency exchange
• Loans
• money transfers

Investment and fund management: the offshore bank manages bonds, stocks and other securities for its customers. It 'also known as money management or portfolio management. Depending on the size, offshore banks can also come with additional services. An offshore bank charges usually money for their services. However, the price of these services differs largely from one offshore bank to another.

Most offshore banks function within a highly regulated environment. Some offshore banks also offer higher interest rates than banks in their country, but the minimum fees and deposits required to open accounts with several banks offshore, at times make them inaccessible to the general public.