5 Factors to Consider to Open an Offshore Bank Account

by Zaara 06, Apr 2021

5 Factors to Consider to Open an Offshore Bank Account

Offshore banking is often associated with a high level of financial sophistication and, sometimes, chicanery. However, the reality is that the average person can open an offshore account with just a few hours of work. Each offshore bank and foreign jurisdiction has its own requirements, so you'll have to do some research to find the specifics relevant to your situation.

Are you looking to open an offshore bank account either for professional or personal purposes? There are a lot of factors that go into that decision. It depends on your financial goals, and of course, your circumstances. With a wealth of experience in the offshore realm, both in the UAE and other reputable jurisdictions around the world here’s what we recommend you should consider when evaluating what’s the best multi-currency offshore bank account for you.

Use these five tips to help you choose the right offshore bank to meet and even surpass all of your financial needs overseas.

1. Location of the Bank

Location is an important factor while deciding on offshore banking. Not all offshore banks are located in the same jurisdiction, and that jurisdiction can have a tremendous impact on everything from the stability of your assets to the amount of money you could pay yearly in taxes. The best jurisdictions to select will be those that have stringent reserve requirements for all banking institutions as well as those with friendly tax laws when it comes to foreign investment. Belize, for example, is a top contender among investors looking for the best security and savings at an offshore bank.

2. Check for Online Banking Services

In today’s modern world, many people are used to banking online rather than in person or over the phone. The need for online banking will be especially pronounced when account holders are located in a different country and have to worry about time differences and the logistics of getting to the bank’s location. Fortunately, many of the leading offshore banks today allow for online services and transactions, giving account holders access to their money 24/7 and from any location with an Internet connection.

3. Explore the Range of Banking Services

Even if an offshore bank is perfect in every respect, it won’t be the bank for you unless it offers the services you need. Don’t be afraid to ask and confirm that a bank you’re considering offers the exact range of financial services you need most. This could be more traditional things like savings accounts and loans, or it could be international investments, managed mutual funds and offshore trusts.

4. Question Customer Service and Reputability

If you’re in one country and your bank is in another, you need to be able to trust and communicate with bank staff. Customer service should be a priority, and you can find out how a bank’s staff handles communication right away. Confirm that they can contact you in various mediums to suit your preferences, and see how quickly they respond to your initial questions or concerns. With these tips, you will be ready and able to select the right offshore bank that surpasses all of your financial requirements.

5. Minimum Deposit Requirement

The first and foremost factor is the amount of initial deposit required to open a foreign bank account. Some banks have higher deposit requirements which may not be suitable for individuals and small businesses. Therefore, it is beneficial to do a bit of research about the various offshore banking options available that’ll suit your requirements. You can opt for a bank that offers a lower deposit amount and set up fee.

If you’re looking for the best offshore banks, our team of offshore company formation and offshore banking experts at Commitbiz can walk you through the process. We have everything you need to connect you with a reputable offshore banking provider to open an account. If you would like to begin the application process, contact us.