An incident of leaked documents has garnered worldwide attention, involving prominent people of the world transferring money to offshore bank accounts through a law firm in Panama.
With politicians and celebrities involved in this $2 billion controversy, it may be a good time to examine why anyone should open an offshore account in the first place.
Here are 8 ways how having offshore bank accounts can be useful to you.
1) Protect Your Money
By having an account outside of the control of the local government, you will not have your account frozen with ease.
This gives you time to sort out any misunderstandings without having to live without access to your money.
2) Earn Higher Interest Rates For Your Deposits
You are aware of how interest rates for Singapore can hardly keep up with inflation.
We are looking at a high of 0.1% from a recent check.
Now compare that with Australia.
[image credits: ratecity.com.au]
It makes sense to keep the same amount of money in an offshore account that gets you more returns.
3) Enjoy A Diversification Of Currency
Local banks may give us limited options to hold foreign currency.
3 currencies are supported with OCBC.
[image credits: ocbc.com]
An account with Hong Kong’s HSBC gives you access to additional options such as Canadian Dollar, Euro, Swiss Franc, Thai Baht, Hongkong Dollar, Japanese Yen, Singapore Dollar and Chinese Renminbi.
The ability to internationalize your savings gives you more options to protect your purchasing power.
4) Ensure Access to Medical Care Abroad
In the event where you require medical treatment that’s not available in your home country, you may need to go overseas to receive treatment.
The last thing you’d want to worry about is the waiting time between the funds transfer from your home country to the country where you’re headed.
Here’s where having an offshore account with ready funds help to eliminate any delay in receiving treatment due to insufficient funds.
5) Keeps Your Money Free
While Singapore may not be imposing capital controls anytime soon according to an interview with former finance minister Shanmugaratnam, there’s always a possibility.
When that does happen, it may be too late to send funds outside of the country.
6) Maintain Your Privacy
Your bank account details are not as well-guarded as you think.
If someone wants to know your bank account information, they only need to get a check you’re paying them for something.
With the check in hand, they can go to the bank and deposit a small sum of money.
After making the deposit, they can ask for the balance in the account.
Having an offshore account makes it more difficult for someone to do that.
7) Gain Access To The Global Market
An offshore bank account gives investors an opportunity to enter the global market.
With a wider range of currency flow, it will give you more options to invest in things not available locally.
8) Ensure You Have Personal Freedom
Having an offshore bank account gives you more options. More options mean more freedom for you.
You can see it as a crucial step in becoming free from absolute dependence on any one country.
Now that you know 8 reasons how you can benefit from having an offshore bank account, can you see why many people, especially those that have a lot at stake, are rarely seen without one?