Business & Finance Personal Finance

How to Choose an Offshore Bank

    • 1). Realize that offshore banking is not just for high-rollers and moneyed people who have something to hide.

    • 2). Determine what level of privacy you require. Some offshore banks offer considerably more customer privacy than others. Based on the complexity of your holdings as well as your preference, only you can determine what level of privacy you need.

    • 3). Choose a bank that speaks the same language that you do. Do not underestimate the importance of being able to conduct business as well as to get information from a person who speaks your language fluently.

    • 4). Search for someone with offshore banking experience who can help you find the bank that's right for your situation by matching your financial goals with a bank's strength.

    • 5). Use a debit card rather than a credit card for most purchases if you place a lot of value on security. First, debit cards are largely free, and they are honored virtually everywhere, while credit cards can be quite expensive when issued by an offshore bank. Besides, they do not provide a paper trail like a credit card.

    • 6). Choose a currency that is likely to be strong during the next several years, and convert your holdings to it. For instance, if your holding are currently in U.S. dollars, you are running the risk of it dropping in value against more stable international currencies. It's one easy way to provide your holdings more diversification.

    • 7). Compare fees before choosing to do business with an offshore bank. Most of them have annual fees, and some even have fees to establish your account. But depending on the amount of money you intend to deposit, those fees can be less than the additional interest you will earn on your account.

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