Overseas Bank Accounts
An overseas bank account that is used as an offshore bank account can serve many purposes. Just like an offshore bank account, an overseas bank account refers to a bank account that is held in a foreign country. Such bank accounts offer many similar and additional benefits as those presented by domestic banks and their account services. Overseas banks accounts also differ in that they enjoy a much greater degree of privacy from the mere fact that they are not held locally.
Holding an overseas account gives greater access to certain banking facilities that are not available at domestic banks, making it possible to perform a larger number of transactions. Overseas bank accounts like offshore bank accounts, for example, enable their holders to access multi currency accounts which enable trading and transacting in different currencies. An overseas bank account can therefore be held in Euro, US dollars and British pounds, since these are the most commonly used and major currencies.
Persons who are informed about tax deferment can use a bank account overseas to achieve this by putting away a certain amount of funds in an overseas bank account so that interest can be accumulated over a certain period of time. Bank accounts overseas can be used as investment savings that can be withdrawn upon retirement or at a given time or upon occurrence of a particular event. Investing in this way is safe and can produce attractive returns especially of the interest rates offered are much higher than those offered by local banks. In the case of a pension plan or revenue put in a bank account overseas, tax on income can be deferred if the money is invested for a number of years and does not serve or is received as a form of monthly or regular income for the beneficiary. The overseas bank account would have helped in deferring taxes because taxes can be paid at a later date by which time the investment would have earned interest and taxes would become payable when the investment is being cashed in regularly. This is one way in which overseas bank accounts help in asset and financial management and planning, allowing people and companies to separate their wealth in a way that enables them to dedicate certain funds to certain causes or intentions.
Many people residing in places where bank accounts can be seized at any moment. For such people, an overseas bank account represents a certain degree of freedom by knowing that these funds are going to be available safely offshore no matter what goes on locally. A lot of planning can be done by even holding a certain portion or all of the funds in trust if the bank in which the overseas bank account is held offers offshore trust services or if an overseas trustee is contracted to take care of such matters. Overseas bank accounts, in this sense, afford peace of mind, which would otherwise not be possible simply because of worrying over the security of local investments.