Offshore Banking - When It Pays To Go Abroad

By:Joseph Kenny

While you might presume anyone with ‘money in offshore accounts’ is involved in some scurrilous business affairs, the truth is that anyone can use this form of investment as a totally legitimate way to defer or reduce your tax payments.

Locations for offshore accounts can be held in banks in British waters – the Channel Islands or Isle of Man for example, or you could look further afield to the Republic of Ireland or Luxembourg. As with other investments, there are different ways to send your money abroad, with different levels of risk attached.

Some of the benefits include current accounts with higher levels of interest – check out the high street banks, many of which offer offshore instant access accounts. These are a relatively safe way to invest. There are also ‘notice’ savings accounts which can yield exceptionally high rates of interest.

You may choose to put money into an offshore investment fund, which is similar to the normal onshore type, only you usually find that you pay a performance related fee to your fund manager. This could mean that they have more incentive to make sure your money is working hard for you. Check investment companies like Schroders and Gartmore for this type of fund.

Money funds are a high risk form of investing – your funds will be pooled with those of other investors’ and used to buy international currency at wholesale rates. Your shares will be exposed to the vagaries of international exchange rates, and this can be a nerve-wrackingly unpredictable way to invest abroad.

More and more people are choosing to buy property abroad – whether as future dream retirement home or as profit making venture. In Eastern Europe and the Middle East you can pick up property for remarkably low prices – developments and agencies advertise in the property sections of newspapers, and websites abound. While this could prove a sound long-term way of investing, there are numerous things to take into account – the stability of a country’s economy, complicated legal agreements and the cost of travel to and from the property are major factors.

Different countries operate wildly different property law, and you will need to get sound advice on all the implications before buying abroad. Check things like inheritance law – for example, in France, there are obstacles to simply leaving property to named recipients in your will. If you do buy abroad, you will probably find it useful to open a multi-currency account.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: banking, offshore, abroad, tax, finances, savings, investment, uk, bank, trust, interest, charges

Article Source: http://www.articles2k.com

Joe Kenny writes for Card Guide, offering the latest information on credit cards in the UK, visit them today for the best balance transfer credit cards and start clearing credit card debt today.

Top Finance Articles
1). Locate And Find Debtors With A Credit Collection Agency By : Stu Pearson It can be a frustrating experience trying to collect a debt from a customer who just seems unwilling to pay. Letters sent to their address go ignored, and phone calls are answered with empty promises of payment. While this is certainly a bad scenario, what if a customer who owes you money just disappears? It is possible to locate and find debtors with a credit collection agency, and in this article we’ll explain to you the methods behind their tracking.
2). Top Ten Tips for Getting Out of Debt By : Russ Dalbey Top Ten Tips for Getting Out of Debt
3). Benefits of Getting a High School Scholarship By : Sandra Stammberger Education is the best thing you could ever have in this world. Learning different things in this world will give you a big pleasure.
4). Who Is Responsible For Closing Costs By : Raynor Buying or selling a home is a euphoric experience for both of the parties involved. This euphoria can cool when you learn which party is responsible for the closing costs. Who Is Responsible For Closing Costs When looking to buy or sell a home, every person eventually arrives at the question of funding closing costs on the transaction. To put it simply, both buyers and sellers typically are responsible for some of the closing costs.
5). Family Finance By : Joseph Kenny One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence.
6). Preparing Your Finances For A Bird Flu Pandemic By : Pandemic Zone If you have been paying attention to the news lately you may of heard of the threat of bird flu and a world pandemic. What would this mean and how would it affect your financial holdings. The World Bank, which has estimated that a bird flu pandemic lasting a year could, cost the global economy up to $800 billion dollars. The economic toll on the world economy will be catastrophic.
7). Loans for Self Employed : Supporting the idea of being independent By : Christian Phelps Loans for Self Employed : Supporting the idea of being independent
8). High Gas Prices and Ways to Save By : essmeier With Memorial Day around the corner, the great American travel season is here. During the summer, most Americans take at least one extended vacation, and four fifths take that trip by automobile. Unfortunately, this year, the price of gas is at record highs, and no one likes to spend their vacation money on gasoline. While there is little to be done about the price of gas itself, there are some things the average vacationer can do to help ease the costs of auto travel.
9). Five Rules to Consider Before Filing Banckruptcy By : Nathan Dawson Five different rules to consider when trying to decide if filing bankruptcy is the right move. If bankruptcy is the right move, which chapter should you file?
10). Trading Psychology – Adopt the Right Mindset for BIG Profits! By : Stephen Todd The fact is the majority of traders lose because they cannot control their emotions. Trading psychology is one of the keys to investment success.

New Finance Articles
1). How To Earn Money Online In Five Easy Steps By : John Morris Living in Los Angeles, Greg realized that there are a lot of people who work from home rather than the office. One reason is that many of these executives are writers and producers of films and television shows...
2). You Can Stick to Your Budget By : Jonathon Hardcastle Recent studies have shown that Americans are spending less money on necessities than ever before. Yet, more Americans are also in debt. The unspoken fact that makes both those statements true is that Americans are spending more and more money on luxury items.
3). Technical Analysis Of Stock Data By : John Morris To perform a technical analysis is simply examining stock chart data in order to make predictions about the future of that stock. Investors who use this style of analysis are often unconcerned about the nature or value of the companies they trade stocks in...
4). Getting The Most Money Out Of Selling Your House By : John Morris It is easier said than done to make a profit in the real estate market nowadays. Those that manage to consistently turn a profit on real estate investments have been working in that field for years and are using proven strategies in order to minimize risk...
5). How To Solve Banking Disputes By : Peter Kenny Solving a dispute with your bank is easier than you think
6). Why Would You Want To Use Tax Deduction Software? By : Michael Williams With all the options in tax deduction software it is hard to distinguish which ones are offering the best deals. A lot software is web-based, but there are still a few that can be loaded onto your personal computer. Find out more...
7). Biggest Budget Blunders By : Nathan Dawson Does your budget never seem to balance the way it should? Are you constantly digging into the savings to make ends meet?
8). Tips For Safe And Secure Banking By : Peter Kenny The key to safe and secure banking is to reduce the risk of your account details being exposed
9). Hope for Students with Poor Credit By : Jeremy Thompson Even if you have poor credit there is still hope when it comes time to get a student loan. Read this article for more information.
10). How Can I Be Approved For A Low Rate Credit Card? By : Mike Singh When applying for a credit card you may come upon what is called a low rate credit card, what is this exactly and how can it help you? First of all you should know that a low rate credit card is usually an excellent way to go when applying for a credit card. Find out more...