Offshore Savings Account Interest Rates
Offshore savings accounts are becoming very popular nowadays. An offshore bank is simply put a bank located outside the geographical limits of your country. The main attraction of creating an offshore account was the location of the bank in possible low tax areas thereby allowing you to save taxes. Offshore savings accounts also allow higher rates of interest than onshore accounts. Interests on offshore accounts are paid without any tax cuts. Depending on where you reside your offshore account might not even be taxed once transferred to your country of residence.
Moreover there is no capital gains tax, death duties or heavy inheritance tax on these accounts. For business people who travel for work in different time zones, offshore accounts make sense for they allow 24hours access. Moreover most offshore accounts allow you to save and invest in different currencies be it sterling, Euro or Dollar.
However, you must be careful in choosing a bank to open offshore accounts in as they are not controlled and regulated by financial rules of any country. In case the bank collapses you may loose your money. If you choose a reputable offshore bank then they will guarantee all funds lost by world market fluctuations and inflations. So go for offshore banks which have been in operation for long and have built up a solid reputation for honesty and transparency. Here are some well known reliable banks that offer offshore accounts with interest rates:
- Abbey International offers 4.00% and 3.75% AER (annual equivalent rate) on offshore fixed accounts for 5 years and 3 years period respectively.
- Alliance and Leicester International offers 3.00% AER for notice/term accounts for 50 and 60 day period.
- Anglo Irish Bank Corporation (International) offers 3.00% AER for 12 month bond
- Lloyds TBS International offers 3.50% AER for fixed term deposits lasting 1,2,3, or 5 years