International banking 101 28 Nov 2024

What is offshore banking?

If you’re reading this article, then you’re probably exploring your options while deciding which offshore bank account to open. Fortunately, your financial options have broadened and become more accessible as the world has become more globalised and inter-connected.

Today, an offshore bank account is within reach of a growing number of people who work, travel or live globally. More importantly, this increased accessibility makes international banking a key pillar in your diversified financial portfolio.

Reasons to open an offshore bank account

For frequent travellers

Holding funds in a foreign currency means you avoid the hassle of currency exchanges when traveling. Your money is always accessible, no matter where you are.

Supporting family members abroad

Easily transfer money to loved ones without incurring high international transfer fees. Multiple accounts in different currencies make sending and receiving money globally convenient.

Receiving foreign income

Manage income in various currencies efficiently. Offshore accounts give you access to Standard Bank international saving and investment solutions, which lowers the costs and complications of frequent currency conversions.

Owning property or investments abroad

Simplify international investments by holding funds in the same currency as your assets. This helps reduce currency risk and ensures timely payment of expenses related to your properties or investments.

Consolidating wealth

Keep your money secure and accessible in a major international currency as part of your long-term financial plan. This makes it easier to spread your currency exchange risk and grow your wealth, regardless of where you are in the world.

Benefits of international banking

An offshore bank account offers a number of benefits a local account cannot offer.

Ease of banking

International banking services make it easy to handle day-to-day payments, save, invest, and borrow in foreign currencies, opening a world of opportunities.

Tax efficiency

Depending on your personal circumstances, such as your country of residence, an international account might offer effective tax and inheritance planning.

Currency risk mitigation

You can manage and spread your currency exposure strategically, reducing the impact of exchange rate fluctuations on your finances.

Regulated offshore banking

Offshore bank accounts in a transparent, highly regulated jurisdiction like Isle of Man provide a safe and secure alternative location for your funds.

Tax obligations

While offshore accounts could provide a tax-efficient way to save and invest, you need to disclose your income to any relevant tax authorities and declare any interest earned on offshore accounts. It is always best to consult tax and financial professionals who are qualified to give you the right advice.

Costs

Some offshore accounts may have a monthly fee or charge for international transfers. Others don’t. So, do your research to find an offshore bank account that suits your usage patterns and needs.

Security

Standard Bank Offshore clients, other than a trustee or nominee, receive protection up to £50,000 for an individual or charity from the Isle of Man Depositors Compensation Scheme.

How to open a Standard Bank offshore bank account

Step 1: Apply online

Start by completing a quick, online check to confirm that you’re eligible for an account with us. This includes providing your country of residence, nationality and age, as well as your contact details to complete the account application process.

Step 2: Await confirmation

We will contact you within 72 hours by call or email to initiate the application process.

Step 3: Application and supporting documents

You will need to digitally complete some documents like the application form and upload identifying and supporting paperwork.

Step 4: Fund your account

Once approved, please transfer at least the minimum deposit amount, which will activate your new offshore bank account.

Explore our offshore bank accounts

Click here to see Standard Bank’s offshore bank accounts that cater to the needs of individual and corporate clients.

With our accounts you can bank in pound sterling, US dollar, euro or Australian dollar while enjoying 24/7 secure online access via online banking or our mobile banking app.

If you’d like to find out more, speak to your financial advisor or contact us from South Africa at [email protected] or direct all other international applications to [email protected]