Guide to Offshore Banking and International Accounts

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Guide to Offshore Banking and International Accounts

An offshore bank account is one typically located in a low tax jurisdiction that can be advantageous on financial and legal grounds.

• A key benefit of having an offshore account is the potential to receive interest without tax being deducted 
• In addition, offshore banks can provide access to politically and economically stable jurisdictions which may be an advantage to those living in volatile countries

International accounts are offshore accounts usually suitable for expatriates, those who travel abroad regularly or for those who require banking in a particular currency. In addition to the benefits of an offshore account, expatriates can utilise a host of features similar to those offered by many domestic bank accounts, such as personal cheque accounts, savings accounts, secure Internet banking facilities, debit and ATM cards, credit cards and loans.

Services Provided

Onshore bank accounts are, like most products, becoming ever more sophisticated. Although many expatriates continue to use them to manage their finances, onshore accounts will not usually be able to offer the tailored solutions provided by their international equivalents. International accounts have become increasingly bespoke in recent years with banks aiming to make expatriates lives much easier due to the rising number of people choosing to live and work abroad.

Most accounts are now available in three different currencies and can be accessed 24 hours a day. A dedicated relationship management team, experienced in dealing with the needs of international customers is available.

Another major new development is discounted travel and medical insurance, which many providers now offer in addition to the more traditional bespoke savings and investment products.

Perhaps one of the more significant new benefits is the introduction of international mortgages – some institutions are now able to provide lending into popular expatriate (and holiday) destinations, greatly easing what can be a daunting process in some countries.

Managing the Account

The process of opening an international account varies from bank to bank but can usually be done from the country of residence via post or, if the bank has a local presence, from their representative office.

International banking has always been very important to expatriates but, with new innovations being added all the time, it is becoming increasingly popular too.

Prepared by Rochelle Cushen, Business Development Manager, Lloyds TSB Offshore Ltd.
Lloyds TSB Offshore Limited. City House, 3rd Floor, 6 Karaiskakis Street, CY-3032 Limassol, Cyprus. Tel: (+357) 2550 3190 Fax: (+357) 2550 3192 
www.lloydstsb-offshore.com/international
Lloyds TSB Offshore Limited is registered in Jersey. Company Registration No. 4029. Registered Office: PO Box 160, 25 New Street, St Helier, Jersey, JE4 8RG. The Cyprus branch of Lloyds TSB Offshore Limited is registered as an overseas branch under the Cyprus Companies Law Cap.113 with the registrar of Companies, Registration No. AE 2162 and is authorised by the Central Bank of Cyprus to conduct banking and investment business.