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The disadvantages of offshore banking accounts

Not many people realise that offshore banking accounts are less financially secure than accounts based in the UK. In 2008, a major financial crisis rocked the financial world and only one off-shore bank managed to keep hold of all of their customer's money. Most other people, lost money in that crisis. In the UK, a person's savings are insured if they are £75,000 or less. This means no matter what banking incident may occur, your savings will be safe.

Unfortunately, in the past drug cartels and underworld gangsters were attracted to the privacy of offshore banking accounts, giving the whole process something of a bad name they have found difficult to shake. Following the terrorist attacks in America on September 11th, 2001, many offshore banking facilities have been accused of helping these terrorists and other criminals. Despite this, it should always be noted that offshore banking accounts are legitimate banking sources and while some of their rules maybe lax, they are not above the law.

Depending on the location of your offshore bank, keeping up with the goings on of your offshore banking accounts can be expensive. Even if you do not have to travel to the bank's physical location, the cost of phone calls to the bank and postal mailing all adds up and is an expense you would not have with a banking account situated in the UK. Offshore banking accounts are often favoured by wealthy people trying to protect their assets from divorce, company takeover and other things. While there is some protection, offshore accounts are not the best asset protection strategy out there.

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